OECD downgrades its global growth outlook

The Organization for Economic Cooperation and Development (OECD) released its growth forecast on Thursday. The OECD downgraded its global growth outlook.

"Global growth prospects have practically flat-lined, recent data have disappointed and indicators point to slower growth in major economies, despite the boost from low oil prices and low interest rates," OECD Chief Economist Catherine L. Mann.

"Given the significant downside risks posed by financial sector volatility and emerging market debt, a stronger collective policy approach is urgently needed, focusing on a greater use of fiscal and pro-growth structural policies, to strengthen growth and reduce financial risks," she added.

The OECD expect the global economy to grow 3.0% in 2016, down from the previous estimate of 3.3%, and at 3.3% in 2017, down from the previous estimate of 3.6%.

The U.S. economy is expected to expand 2.0% in 2016 and 2.2% in 2017, down from the previous estimate of 2.5% and 2.4%, respectively.

Japan's economy is expected to grow 0.8% in 2016, down from its previous estimate of 1.0%, and 0.6% for 2017, up from the previous estimate of 0.5%.

Eurozone's forecasts were downgraded to 1.4% in 2016 from the previous estimate of 1.8% and to 1.7% in 2017 from the previous estimate of 1.9%.

China's growth forecast for 2016 remained unchanged at 6.5%, while 2017 forecast remained unchanged at 6.2%.