All major global economies headed for slowdown: OECD report
Every major global economy, including China, Russia and the United States, is headed for a slowdown, according to a new report from the Organization for Economic Cooperation and Development.
The Paris-based group tracked composite leading indicators -– which predict economic turning points -– and found that growth levels around the world are set to drop for the seventh straight month.
The Eurozone has been plagued by a debt crisis and political upheaval. On Sunday, economist Mario Monti took over from Silvio Berlusconi as Italy's prime minister amid hopes that a new government will implement austerity measures encouraged by the European Union.
George Papandreou, stepped down as prime minister of Greece last week and was replaced days later by banker Lucas Papademos, who inherited an unpopular bailout plan designed to keep the country from teetering into default.
In such an unstable environment, the OECD's indicators hit their lowest overall level since 2009, slipping to 100.4 in September, from 100.9 in August. Any figure above 100 represents a long-term trend of economic activity.
Economic expansion in the U.S. is losing momentum, down to 101.2 from 101.5 a month earlier, according to the report. Germany is bound for the biggest slide, down to 99.1 from 100.4, it said
At 97.5, Italy has the report's lowest score in Europe, and worldwide, it is higher than only Brazil's 94 and India's 93.8.
-- Tiffany Hsu
Photo: The flags of Italy, center, and the European Union, right, fly from the Quirinale palace, the office of Italy's president, in Rome. Credit: Alessia Pierdomenico / Bloomberg