OECD downgrades UK GDP forecast

UK GDP will shrink by a total of 4.7% during 2009, the OECD says, down from its earlier forecast of a 4.3% reduction. By comparison, both the US and eurozone are expected to begin growing again during the third quarter, after seeing ‘favourable' developments in recent months. The US economy is expected to rise by an annual rate of 1.6% by the end of September, while the eurozone's GDP will grow by 0.3%, the OECD predicts. However, ‘headwinds', such as high unemployment and depressed house prices, are likely to slow down the recovery across OECD countries.