OECD slashes UK Q2 growth forecast

The OECD today cut its second-quarter growth forecast for the UK to 1% from 1.3%, but said growth prospects for the G7 nations were rosier.

The OECD says it expects G7 GDP growth - excluding Japan - to total 2.9% in Q2, up from its previous estimate of 1.3% in November. The group says underlying inflation rates are still low across the G7, boosting growth, while the private sector is benefiting from healthy balance sheets. The report took into account developments in the UK and US housing markets which resulted in UK growth prospects being downgraded. However, the US was upgraded to 3.4% from the 1.6% original estimate. Pier Carlo Padoan, OECD chief economist, adds accelerating private sector investment and a trade...