Paris-based think tank, the Organisation for Economic Cooperation and Development (OECD) has said that India is projected to grow at a slightly slower pace than expected earlier at 7.2 percent this fiscal but the country is an 'exception' to the worsening picture in major emerging economies. Earlier, in June this year OECD had projected India’s growth at 7.3 percent in 2015-16 and 7.4 percent growth in 2016-17, respectively. The think tank emphasised that India is projected to continue to grow strongly, broadly in line with 2015, and EMEs like Brazil and Russia should see some improvement in 2016 if commodity prices do not fall further.
In its interim economic outlook report OECD said that global growth prospects have weakened slightly and become less clear in recent months. It added that world trade growth has stagnated and financial conditions have deteriorated. It also trimmed the global growth forecast to 3 percent this year from earlier projection of 3.1 percent. The recovery is nonetheless progressing in advanced economies, but the outlook has worsened further for many emerging market economies (EMEs).
Regarding other countries, OECD said that slowdown has been sharpest in countries heavily dependent on commodities and/or with close trade links to China, notably in East and South-East Asia. In 2015, China is expected to grow by 6.7 percent and at a slower rate of 6.5 percent next year. Brazil's economy is expected to shrink by 2.8 percent in 2015 and by an additional 0.7 percent rate in 2016.