India and China are seeing economic slowdown while growth momentum is losing steam in most of the developed world, says Paris-based think tank OECD.
Two of the world's fastest growing economies -- India and China -- are grappling with slowdown amid persisting euro zone debt turmoil and faltering global growth.
OECD's assessment comes on a day when Moody's became the latest financial services firm to cut India's growth projection. The entity now expects the economy to expand 5.5 per cent this year amid turbulent global conditions, domestic policy missteps and poor monsoon.
The Organisation for Economic Cooperation and Development a grouping of mostly developed nations, today said that composite leading indicators (CLIs) for June showed slowdowns in most non-major non-OECD nations including India.
CLI indicates turning points in economic activities. "In China, India and Russia, the CLIs continue to point to a slowdown," OECD said in a statement. India's CLI, which has been declining since February this year, stood at 97.9 in June - a tad lower than 98 in May.
China's CLI remained at 99.3 in June as well as May. In the past few days, Citi, CLSA and Crisil have slashed their growth forecast for Indian economy.
The Reserve Bank, in its quarterly policy review on July 31, had trimmed its growth forecast to 6.5 per cent from the earlier 7 per cent.
The government, in the 2012-13 Union budget, had projected an economic growth of 7.6 per cent.
On the other hand, OECD data showed that in Brazil, there were signs of moderate pick-up in economic activities in June compared to the previous month.
"The CLIs for Japan and the US show signs of a fading growth momentum... For the euro area, France and Germany, the CLIs continue to point to weak growth. In Italy the CLI points more strongly to a slowdown," the statement noted.