The Organization for Economic Co-operation and Development (OECD) released a report forecasting global growth of 4.2 percent for the year – significantly lower than last year’s result of 4.9 percent. The OECD blamed the reduction on rising oil and commodity prices as well as the earthquake and tsunami in Japan.
The OECD further cautioned that a sharp rise in prices coupled with a slowdown in growth, could lead to a state of “stagflation“.
Source: BBC News
