The Organization for Economic Cooperation and Development (OECD) has lowered its global growth forecasts due to increasing commodity prices and the repercussions of the Japanese earthquake.

Revised Growth Projections

The OECD’s latest Economic Outlook projects global GDP growth of 4.6% for the current year. This represents a downward revision from the previous forecast of 5.1%.

Key Factors Influencing the Revision

• Rising Commodity Prices: The surge in commodity prices, particularly oil, is expected to dampen economic activity.
• Impact of Japanese Earthquake: The earthquake and subsequent tsunami in Japan have disrupted supply chains and industrial production, affecting global growth.

Regional Growth Outlook

The report also provides specific growth forecasts for major economies:

• United States: Growth is projected to be around 2.6%.
• Eurozone: The Eurozone is expected to grow at a rate of approximately 2.0%.
• Japan: Japan’s economy is anticipated to contract in the short term due to the disaster.

The OECD emphasizes the need for governments to address fiscal imbalances and implement structural reforms to support sustainable economic growth.