Rich world sees slowdown in June qtr

Paris-based Organisation for Economic Cooperation and Development (OECD) is a grouping of 34 countries,which account for over 60 per cent of the global output.

“Gross domestic product (GDP) in the OECD area slowed to 0.2 per cent in the second quarter of 2011,down from 0.3 per cent in the previous quarter. This is the fourth consecutive quarter of slower growth,” OECD said today.

Key economies in the OECD area — Germany,France,the UK and the US — witnessed disappointing growth numbers in 2011 June quarter.

While French economy stalled at zero per cent growth,Germany expanded just 0.1 per cent while expansion stood at0.2 per cent in the British economy.

Sluggish economic activities were more marked in the euro area — a grouping of 17 nations that share euro currency.

Starting with Greece,the debt turmoil in the region has spiralled in recent months and fears are high that the crisis could affect larger economies such as Spain and Italy.

Euro zone saw an expansion of 0.2 per cent in the June quarter as against 0.8 per cent growth in the first three months of 2011.

According to the OECD,June quarter economic growth rose to 0.3 per cent in both Italy and the US. In the previous three months,both countries had recorded an expansion of 0.1 per cent.

Japan,which was ravaged by tsunami and earthquake in March this year,reported a contraction of 0.3 per cent in 2011 June quarter. However,the fall was lower than 0.9 per cent seen in three months ended March.

In recent weeks,S&P’s move to strip the US of its coveted ‘AAA’ rating has rattled world markets and has also ignited fears of severe global economic slowdown.