Global growth is pretty slow: but nothing is quite as slow as Europe.
That’s the main message from the Organisation for Economic C0-operation and Development (OECD) Thursday morning. Its latest set of economic forecasts are out, and they’re not pretty.
According to the Paris-based think tank, global growth will only reach 3.3% this year, 3.7% next year and 3.9% in 2016. That’s a pretty meagre pace in comparison to the expansion before the crisis. But if you thought global growth was poor, check out the eurozone:
France and Italy’s growth projections for 2015 are only beaten by Russia. In 2016, the OECD suggests only ageing Japan will see slower growth than the two sluggish euro economies. Even a relatively optimistic 1.7% projection for GDP growth for the eurozone by 2016 is barely half the pace expected for the US.
So at this point the OECD are pleading with the ECB, who announce their latest policy decisions today: please, please do QE. Buy something, buy anything!
Angel Gurria, secretary general of the OECD, summed it up: “There is an increasing risk of stagnation in the euro area. Countries must employ all monetary, fiscal and structural reform policies at their disposal to address these risks and support growth.”