OECD warns lack of investment could prompt new global slowdown

Paris-based thinktank believes stronger investment is needed to revive labour productivity, wages and competitiveness in the UK

A dearth of investment by governments and business has left the global economy vulnerable to a renewed slowdown, a leading thinktank has warned as it slashed its forecasts for the United States.

The Organisation for Economic Cooperation and Development (OECD) said the recovery since the global financial crisis had been unusually weak, costing jobs, raising inequality and knocking living standards. In its latest outlook, it saw global growth gradually strengthening but not until late 2016 will it return to the average pace of pre-crisis years.

The world economy is muddling through with a B-minus average