Weak activity to continue throughout 2008 - Interim economic assessment

Financial market turmoil, the bursting of the housing bubble and high commodity prices continue to weigh on global economic growth, according to OECD’s latest interim economic assessment of the G7 countries.

Banks have recognized most of the losses and write-downs related to the sub-prime mortgage market but the eventual extent of the financial disruption is still uncertain.

Housing prices are decelerating or falling in many countries. Construction activity is also down. Oil prices have fallen from their peaks but remain volatile. Prices of other commodities appear to have steadied at high levels. High commodity prices have boosted inflation and sapped real incomes of consumers across the OECD area.

Further reading:

• OECD's interim economic assessment 
• Podcast of the interim economic assessment press conference, 2 September 2008
• OECD Economic Outlook No. 83, June 2008