11 April 2001, 11:58  OECD CUTS EMU GDP FORECAST FOR 2001

The OECD revised down its forecast for eurozone economic growth in2001 to 2.7% from the 3.1% forecast in November. November. TheOECD said in its survey of the euro zone that it had kept its forecastfor growth in 2002 unchanged at 2.8%. It said the new projections arepreliminary and assume a small decline in short-term interest ratesby mid-2001. Average consumer inflation is seen at 2.2% this year, upfrom 2.0% originally forecast, and at 2.0% next year, down from 2.2%forecast before. An OECD economist said the ECB might have to cutrates more than an assumed 25bps if the outlook worsens anddownside risks to growth increase.

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