PARIS (Reuters) - The growth outlook for advanced economies has stabilized at long-term trend levels but is deteriorating for most major emerging market countries, the OECD said on Tuesday.
The Paris-based Organisation for Economic Cooperation and Development said its leading indicator covering 33 member countries was at 100.7 in February, flagging steady economic growth for the third month in a row.
The euro area showed a “positive change in momentum”, the OECD said, with its reading edging up to 101.1 from 101.0. The outlook had brightened for Germany and Italy in particular, while France’s reading was stable.
The OECD said growth in the United States was around its long-term trend level although the reading for the world’s biggest economy eased slightly to 100.5 from 100.6 in January.
Japan’s outlook was stable, with its reading unchanged for the third month in a row at 101.2, though the OECD said the indicator may not fully capture the impact of an increase this month in value-added sales tax.
Outside the OECD group of countries, Russia was seen losing growth momentum with its reading falling to 99.4 from 99.6. Investment outflows following Moscow’s annexation of Ukraine’s Crimea region last month are widely expected to drag on the economy.
Below-trend growth was also seen in India and Brazil, while the reading for China, the biggest emerging economy, which has been seen at risk of a sharper-than-expected slowdown, was stable and in line with its long term trend.
Reporting by Leigh Thomas; Editing by Catherine Evans