Growth weakening in major emerging economies: OECD

PARIS: Growth is weakening in major emerging economies, the OECD said on Tuesday, while the recovery in the eurozone remains on track despite some signs of a slowdown in Germany.

The OECD index of composite leading indicators (CLI) showed that growth conditions were below trend in Brazil, China and India and even losing momentum in Russia, struck by the crisis in Ukraine. Inside the eurozone, the CLIs show growth strengthening in Italy and the single currency bloc as a whole, with the two biggest economies France and Germany showing stable growth momentum. But other data this week has suggested that the German economy, a longtime bright spot in the often troubled eurozone, may be stalling.                

On Tuesday, a survey from the ZEW economic institute showed that investment sentiment in Germany fell to the lowest level for nearly 1.5 years. Analysts are however still expecting solid growth for this year.

The French central bank meanwhile forecast that France, while avoiding recession, will only see anaemic growth of 0.2 percent in the second quarter this year. The head of the French MEDEF employers' union Pierre Gattaz said his data showed no "reversal in the outlook" for France save perhaps "a halt in the decline of certain sectors". For the OECD as a whole -- and the United States, Canada and Japan in particular -- growth remained at a stable momentum with Britain showing initial signs of acceleration.