OECD cuts economic growth forecast for eurozone

Think tank says more stimulus is needed.

September 15, 2014   by The Canadian Press

FRANKFURT, Germany — A major international organization has cut its growth forecast for the countries that use the euro and says the troubled currency union needs even more stimulus from the central bank and governments.

The Organization for Economic Co-operation and Development, a think-tank dealing with the world’s developed countries, cut its forecast for the eurozone this year to 0.8% from 1.2%t in its May assessment.

The Paris-based OECD also cut its growth forecasts for the US and several other large economies.

The OECD said the European Central Bank needs to do more to help growth in the eurozone, including large-scale bond purchases, to expand the amount of money in the financial system — a move known as quantitative easing.

© 2014 The Canadian Press

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