OECD Slashes Global Growth Forecast

According to a report by The New York Times, the Organization for Economic Cooperation and Development (OECD) said on Wednesday a "sluggish" global growth could present challenges for governments to pay pensions and bondholders.

The OECD is now lowering its worldwide growth forecast to 3 percent this year from a prior estimate of 3.3 percent. Naturally, a weaker growth forecast implies governments collect less revenue and may find it difficult to fulfill their financial obligations.

The Associated Press noted the OECD's chief economist, Catherine Mann, told reporters many countries may need to tap their respective central banks to stimulate growth.

The economist also suggested that government spending and tax policies should be implemented to encourage expansion and economic overhauls. She expanded that low interest rates have failed to encourage business to invest.

Finally, Mann demonstrated confidence in the revised forecast and won't have to revise its estimates lower in the next forecast which is scheduled for June.