View more on these topics

G7 economic growth slowing, says OECD

Economic growth in the G7 is slowing at a faster than expected pace, according to the Organisation for Economic Co-operation and Development.

In its latest interim statement, the OECD says growth could slow in the G7 economies to an annualised rate of about 1.5 per cent in the second half of the year. Overall it predicts that G7 GDP growth will slow to 1.4 per cent in Q3 and 1 per cent by the end of the year.

Of the G7, the OECD says the UK’s GDP growth in the coming quarters will only be second to Canada with annualised quarter-on-quarter growth of 2.7 per cent in Q3 and 1.5 per cent in Q4 2010. In May, the OECD predicted UK Q3 and Q4 2010 GDP growth would remain steady at 2.1 per cent.

The international think tank warns that private consumption growth may be constrained by adjustments by households to the losses suffered during the recession and in response to housing market fears, as well as uncertainty about unemployment going forward.

It says it is unclear whether the slowdown is a temporary phenomenon due to economic fears or whether it is a longer-term problem. The OECD says: “If the ongoing slowdown is temporary, the appropriate policy response would be to postpone the withdrawal of monetary support for a few months, while maintaining planned budget consolidation.

“On the other hand, if the slowdown reflects longer‐lasting forces, additional monetary stimulus might be warranted in the form of quantitative easing and commitment to close‐to‐zero policy interest rates for a long period.”


Payback time

FSA data shows increasing numbers of borrowers with interest-only mortgages without a designated repayment vehicle, reports Paul Thomas

Control points

After the first IFA fine over platforms, FSA conduct and risk division supervisor Rory Percival gives an overview of the key issues to be considered when using platforms


Brokers must survive the 18-month time capsule

There must be readers who, like me, are transfixed and humbled by the Chilean mining story. It provokes countless emotions and the one which is consuming me most is the sheer concept of marking time. Our industry’s travails pale by comparison but a realisation that there are no quick fixes has now surely dawned on […]


A mission to save

The success of the retail distribution review hinges on the benefits to the UK public out-weighing the cost of delivery. Yet the RDR has lost sight of some of its key objectives and the net result threatens to be detrimental to consumers, the financial services and the wider economy. However, the current trend of ever-decreasing […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm