London: Two of the world’s fastest growing economies—India and China—are grappling with slowdown amid persisting euro zone debt turmoil and faltering global growth, the Organisation for Economic Co-operation and Development (OECD) said in a statement on Thursday.
OECD’s assessment comes on a day when Moody’s Analutics became the latest financial services firm to cut India’s growth projection. It now expects India to expand 5.5% this year amid turbulent global conditions, domestic policy mis-steps and poor monsoon.
OECD on Thursday said that composite leading indicators (CLIs) for June showed slowdowns in most non-major non-OECD nations including India. CLI indicates turning points in economic activities.
“In China, India and Russia, the CLIs continue to point to a slowdown,” OECD said in a statement.
India’s CLI, which has been falling since February, stood at 97.9 in June—a tad lower than 98 in May. China’s CLI remained at 99.3 in June as well as May.
However, in Brazil, the OECD data showed, there were signs of moderate pick-up in economic activities in June compared with the previous month. “The CLIs for Japan and the US show signs of a fading growth momentum... For the euro area, the CLIs continue to point to weak growth,” the statement noted.