OECD in its latest report on Monday warned that the outlook across the world's major developed economies has deteriorated in July.

The Paris based think tank appeared to echo many analysts who believe there is a real prospect of a worldwide depression to rank alongside the 1930s.

The assessment from the Organisation for Economic Cooperation and Development, which looked at the prospects for growth over the next six months, said that for the first time since the banking crash all areas of the globe were slowing down.

The OECD said its leading indicator for the world economy fell for a fourth straight month. The G7 major industrialized nations France, Germany, Italy, Japan, Britain and the United States dropped to 102.0 from 102.5 in June in the OECD index - where 100 indicates zero growth - while individual readings for Brazil, India and China also slipped back.

It said “Compared with last month's assessment, Canada, France, Germany, Italy, the UK, Brazil, China and India are pointing more strongly to a slowdown in economic activity. Data coming out of the US and Russia also pointed "clearly to a slowdown in economic activity.”

(Sourced from guardian.co.uk)