The Organization for Economic Cooperation and Development cut its forecast for global growth this year. It nevertheless expected lower oil prices to help growth improve gradually, despite continuing concerns about weak investment.
Growth had received support from strongly accommodative central bank policies in major advanced economies and, outside the United States, from a stronger dollar that made exports from other currency areas relatively cheaper.
The Paris-based organization lowered its global growth forecast for the year to 3.1 percent from the 3.7 percent projected the previous November.
It expected global output to grow by 3.8 percent the following year. China’s strong growth of recent years was expected to slow to 6.8 percent this year and 6.7 percent next year, from 7.4 percent last year.
The OECD expected US growth, which had slowed markedly at the start of the year, to reach around 2 percent, slightly below the previous year’s 2.2 percent, before rising to 2.8 percent the following year.
It said euro-area growth was expected to reach 1.4 percent this year and 2.1 percent next year, supported by sharply lower oil prices, the European Central Bank’s bond-buying program, and the strong dollar.