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    A participant stands at the OECD headquarters in Paris during the presentation of the Economic Outlook at the 2013 OECD Week on May 29, 2013

    OECD Downgrades Eurozone’s GDP Growth Forecast for 2016 to 1.4%

    © AFP 2018 / ERIC PIERMONT
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    The Organization for Economic Co-operation and Development (OECD) on Thursday decreased its forecast for GDP growth in the eurozone in 2016 by 0.4 percent.

    BRUSSELS (Sputnik) The area’s GDP is expected to grow by 1.4 percent in 2016, the OECD said in its Interim Economic Outlook report. The eurozone’s forecasted GDP growth in 2017 stands at 1.7 percent.

    "In the euro area, GDP growth is expected to pick up only slowly with investment remaining weak and unemployment remaining high," the report said.

    Germany, the most powerful economy of the region, is expected to grow by 1.3 percent in 2016 before rising to 1.7 percent in 2017, according to the document.

    The euro area’s GDP growth rate last year averaged 1.5 percent, OECD said.

    The effect of plummeting global oil prices on Europe was less positive than projected, while low interest rates and a weaker euro have not yet resulted in the region attracting stronger investment, the report concluded.

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    GDP, Organization for Economic Co-operation and Development (OECD), European Union
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