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OECD Cuts Global Growth Outlook

The Organisation for Economic Co-operation and Development on Wednesday lowered the global growth forecast for this year and next, citing the unexpected weakness in the first quarter.

The Paris-based think-tank cut the world growth forecast for this year to 3.1 percent from 3.6 percent predicted in November. The outlook for next year was lowered to 3.8 percent from 3.9 percent.

The group expects global growth to pick up through 2015 and 2016 thanks to low oil prices, widespread monetary easing and a reduction in the drag from fiscal consolidation in the major economies.

"The global economy is projected to strengthen, but the pace of recovery remains weak and investment has yet to take off," OECD Secretary-General Angel Gurria said.

"The failure to trigger strong, sustainable growth has had very real costs in terms of lost jobs, stagnant living standards in advanced economies, less vigorous development in some emerging economies, and rising inequality nearly everywhere."

The growth forecast for the U.S. for this year was slashed to 2 percent from 3.1 percent and the projection for next year was cut to 2.8 percent from 3 percent.

In contrast, Eurozone's growth forecast for this year was raised to 1.4 percent from 1.1 percent. The projection for next year was lifted to 2.1 percent from 1.7 percent.

The growth forecast for China was also raised, while Indian growth was projected remain strong and stable and to exceed that of China's. Brazil and Russia were seen exiting recession next year.

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