OECD downgrades US growth forecast

WASHINGTON: The US economy will grow at a slower than expected rate of 1.5 per cent this year, the Organization for Economic Co-operation and Development said on Monday.

The Paris-based OECD said US growth would be far less than the 3.2 per cent predicted in May, and would increase to only 2.3 per cent next year.

"The United States is slowly recovering from a severe recession and, with economic growth projected to remain low for some time," the OECD said.

The body added that "unemployment is likely to stay elevated for a relatively long period."

"Continuation of targeted support for the labor market may also be necessary until private sector employment picks up more strongly."