OECD countries growth slows in June qtr

Most of the developed nations witnessed slowing economic activities in the June quarter, latest OECD data showed indicating that the global economy is heading towards slowdown.

The overall GDP in the OECD region, a grouping of mostly industrialised nations, slipped to 0.2% in three months ended June 2011 -- a decline in growth for the fourth consecutive quarter.

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

"Gross domestic product (GDP) in the OECD area slowed to 0.2% in the second quarter of 2011, down from 0.3% 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% while expansion stood at 0.2% 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.

Eurozone saw an expansion of 0.2% in the June quarter as against 0.8% growth in the first three months of 2011.

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

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