Canadian Manufacturing

Economic recovery hampered by slack in developing nations

The OECD said that emerging market "are experiencing a marked loss of momentum."

PARIS—A leading international economic body warns global growth could remain sluggish as a slowdown in the developing world undercuts gains in Europe and the United States.

The Organization for Economic Cooperation and Development says in an update to November’s World Economic Outlook that developed economies are suffering a temporary slowdown, mainly due to one-time factors like the harsh winter weather in North America. But it said the underlying trend is one of growth.

The OECD said that emerging markets, by contrast, “are experiencing a marked loss of momentum.”

In its report Tuesday, the OECD, a think-tank for the world’s most developed economies, predicts global growth of 3.5 per cent this year from an estimated 2.7 per cent last year.

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