Growth Slows in Major Developing Countries

But China, Russia and Brazil will see continued growth says OECD

Most of the world's leading industrialized nations are facing an economic slowdown while China, Russia and Brazil are expected to see improved or continued growth, the OECD said on Jan. 11. The Organization for Economic Cooperation and Development (OECD) said its leading indicators index fell by 0.5 points in November last year and was 2.2 points lower than November 2006. The indicators, it added, "suggest that a moderate slowdown in economic activity lies ahead in the OECD area."

The OECD groups 30 of the world's most influential economies, including the Group of Seven -- Britain, Canada, France, Germany, Italy, Japan and the United States. The organization said that while the U.S., Germany and Britain were not headed for a slowdown their indicators had nonetheless turned weaker, albeit remaining above the 100 level in the index. A declining reading below 100 signals a slowdown. Data from non-OECD members China and Brazil pointed to "steady expansion," according to the OECD, which foresaw an "improved outlook" in Russia and weakening prospects in India.

The economic activity index fell by 0.8 points in November and 1.5 points on the year in the U.S., 0.3 points in November and 2.3 points on the year in the eurozone and 0.2 points in November and 6.3 points on the year in Japan. The index for China rose 0.2 points in November and was up 2.3 points compared with November 2006. For Russia the index fell 0.4 points in November but was 0.9 points stronger than the same month the previous year. The index for India rose 0.9 points in October 2007 but was 0.4 points lower than October 2006. It gained 1.0 point in Brazil in November and was 6.3 points up on November 2006.

Copyright Agence France-Presse, 2008

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