OECD sees moderate downturn in China, India

The Organization for Economic Co-operation and Development (OECD) today said emerging economies like China and India, which led the recovery, might be heading towards a moderate downturn in the next six months.

The OECD’s composite leading indicators (CLIs) for September 2010 pointed to diverging patterns of economic growth across major economies. The CLIs showed signs of continuing expansion in Germany, Japan, the United States and Russia, while pointing to a moderate downturn in Canada, France, India, Italy and the UK.

OECD said the CLIs for Brazil and China were pointing “strongly downwards”, edging below the long-term trend, implying that the level of industrial production would fall below its long-term trend in both economies.