“Growth is turning out to be much slower than we thought three months ago, and given the high uncertainty, the risk of a period of negative growth … has gone up,” OECD chief economist Pier Carlo Padoan said.
U.S. growth is set to be much weaker than previously forecast by the OECD at 1.1% in the third quarter and 0.4% in the fourth, compared with forecasts of 2.9% and 3% at the end of May.
Mr. Padoan said the OECD doesn’t expect a recession of the magnitude seen in 2008 and 2009, but protracted contractions in some countries would knock confidence, which in turn risks derailing medium-term growth.”
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