US, China economies slow down, while eurozone rebounds - OECD

Reuters/Nikola Solic
Economic growth in the US and China is expected to slow down while the eurozone is still on course for economic recovery this year, according to the Organization for Economic Cooperation and Development (OECD).

“In the euro area, growth momentum continues to strengthen, particularly in France and Italy. Signs of easing growth momentum are emerging in the United States, although these may reflect transitory factors,” the organization said in its Tuesday report based on March data.

The OECD composite leading indicators forecasting economic activity in the next 6-9 months signal a stable growth in countries such as Japan, Germany, Great Britain and India, while a loss in growth momentum is seen in Canada, China, Brazil and Russia.

The US economy has seen a weak start in 2015, with its GDP having grown only by 0.2 percent year on year.

Although most economists expect US economic growth will rebound to the levels of 2014 in the forthcoming months, the OECD report shows this may not happen. The leading indicator for the US fell in each of the first three months of the year, and is now standing at 99.6 against 101.1 in December.

A figure of 100.0 indicates the economy will see average growth of the past decade. Emerging economies generally have higher growth rates than developed ones.

The monthly indicators show that the US index fell from 98.8 to 98.6 and China fell from 98.1 to 97.9. The eurozone index is at 100.7, while in Germany it is 99.8. The index for France rose to 100.8 from 100.6 and in Italy from 100.9 to 101.