‘US likely to record zero growth in 2008 Q2’
Posted by Kavit Sharma on 21 Mar 2008 | Tagged as: Business News - Global
The Paris-based Organisation of Economic Cooperation and Development (OECD) has projected zero growth for the US economy in the second quarter of 2008, indicating that America is inching towards a recession.
“It may be premature to declare a recession, but with the pace of activity so far below potential, economic slack is widening rapidly,” the OECD said pointing out that economic growth rate was likely to slip from 0.1 per cent in Q1 to zero in the second quarter.
Giving growth projections for the G7 nations (US, Japan, Euro Area, Germany, France, Italy, UK and Canada), the OECD report said Japan and Europe were also likely to witness slowdown in growth.
In addition to the sub-prime mortgage crisis, the OECD attributed the slowdown in the US Economy to factors like soaring energy and food prices.
