OECD maintains forecast

OECD maintains forecast

ROME (Reuters): The Organization for Economic Co-operation and Development will maintain its 1998 forecast for growth in developed nations, despite the current crisis in Indonesia, an OECD chief economist said on Wednesday.

Ignazio Visco told Reuters Television Italia the economic grouping would stick with its 2.5 percent prediction, having taken into account Indonesia's political and economic problems when making its six-monthly forecast.

"The crisis is very serious, and we kept this in mind when we made our forecasts for OECD countries," he said.

"Now the situation has worsened. But while the situation is bad for Indonesia, it does not have the potential to worsen further the effect on Western economies."

The OECD "maintains its forecast of 2.5 percent" for member countries and does not see any effect on prices, he said.

The OECD has forecast a 20 percent fall, at most, in Indonesian domestic demand this year.