slow down

The global economy is slowing down in view of a number of factors such as the euro zone's debt problems and a weak U.S. housing sector, but is not headed for a double-dip slump, the head of the OECD said on Monday.

"No, that is not the case," Angel Gurria, secretary-general of the Organization for Economic Co-operation and Development (OECD), told reporters when asked if recent signs of a slowdown pointed to the global economy facing another downturn.

Fed’s forecasts for growth and inflation, that concluded the economic recovery to be proceeding more slowly than it was expected in the spring, appeared to be understated. However, members of Federal Reserve policymaking committee consider that the slowdown did not guarantee new policy actions.

Nevertheless, the Fed leaders agreed to explore options for supporting the economy further if conditions worsen.

According to the head of the International Monetary Fund Dominique Strauss-Kahn developed countries may slow down again if they exit stimulus support too early. Strauss-Kahn underlined that recovery in private demand and employment are necessary conditions for governments to begin exiting policies designed to support their economies.

"Recovery in advanced economies has been sluggish," he said.

"We have to be cautious because the recovery has been fragile."