OECD forecasts global economic slowdown

The Organization for Economic Cooperation and Development (OECD) predicted an economic slowdown at international level given the current panorama of inflation and uncertainty, according to a report.

The document points out that dragged down by high inflation, low consumer confidence and declining stock price indices, the Composite Leading Indicators remain below trend and forecast a loss of growth momentum in most OECD large economies.

These parameters are made up of information related to the order book of the industrial sector, construction permits, confidence indicators, long-term interest rates, new car registrations, among other data.

With these results, the information is compiled that reflects both the confidence of individuals and companies in the future evolution of the economy.

When the index is above 100 points, it anticipates a growth in economic activity, while if it is below, it indicates the opposite.

In July, the Eurozone indicator stood at 99 points, 0.26 percent below the June figure and also at a rate below the OECD average (99.2 points) and the seven largest economies of the world (99.1).

All of them were below the threshold of 100 points.

France 98.1 points, Germany (99.1), Italy (98.7), the United Kingdom (98.2) points and the United States (99). Only in Japan is growth anticipated, with a score of 100.5.

According to the OECD, the main reasons why the forecasts cooled are the persistent uncertainties related to the war in Ukraine, new threats from Covid-19, supply chain disruptions and the impact of high inflation on the real household income and national economy.