OECD sees diverging outlooks for advanced, emerging economies

PARIS: The growth outlook for major emerging economies is worsening but remains largely stable for the big developed economies, the OECD said on Tuesday.

The Paris-based Organisation for Economic Cooperation and Development said its leading indicator covering 33 member countries was unchanged in March for the sixth month in a row at 100.6, above its long-term average of 100.

The OECD said the indicator, designed to flag turning points in the economic cycle, suggested there was "stable growth momentum" in the bloc of mostly wealthy developed nations.

Last week the OECD cut its global growth outlook on expectations that a slowdown in emerging economies would weigh on broader economic activity.

The United States, the world's biggest economy, saw a steady reading from the OECD's leading indicator, unchanged in March from February at 100.4.

For the third month in a row, Germany registered an even stronger reading of 100.8, while the reading for the broader euro area ticked up to 101.2 in March from 101.1 in February.

But Japan saw its reading slip to 101.0 in March from 101.1 a month before as the country prepared for an increase in value-added sales tax in April.

Among the major emerging economies, China saw its reading slip to 98.8 from 98.9, which indicated growth momentum was below in its long-term trend, the OECD said.

It also saw Russia losing momentum, with its reading falling to 99.2 in March from 99.4.