OECD slashes UK growth forecast

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The Organisation for Economic Co-operation and Development has made a sharp cut to its forecast for UK growth in its latest interim economic assessment.

The OECD revised the 2012 growth prediction forecast it made in May from 0.5% to -0.7%, the most severe of several forecast revisions made by the organisation in its latest update. The organisation estimates Q3 GDP will bounce back into positive territory with a growth rate of 2.4%, before turning negative again (-1.4%) in Q4. However, it said the forecast "does not account for the likely shift of activity from Q2 to Q3 due to the additional Diamond Jubilee bank holiday in June." "The impact of the Olympics may also not be fully accounted for in these forecasts." The OECD also l...

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