The Organization for Economic Co-operation and Development is expected to slash its economic growth projections for member states in 2002.

After newswires broke the story, the OECD is admitting that its preliminary forecasts of real GDP growth for the OECD area in 2002 will drop to 1.2%, compared with its mid-year prediction of 2.8%.

It expects to see 1.3% growth from the U.S., down from 3.1%, and 1.5% in the European Union, against an earlier estimate of 2.7%.

For Japan, it quotes a draft prediction of negative growth in 2001 — -0.8% compared with an earlier positive growth prediction of 1.1%.

The OECD says these numbers are provisional figures based on an initial forecasting round and they are subject to change over the next few weeks in the context of the OECD’s ongoing forecasting process. Final figures will be published in the OECD’s Economic Outlook no.70 on November 20.