OECD dials back growth projections

“The fiscal adjustment of the last few years is beginning to pay off,” Gurria said in a statement. “Several countries are close to stabilizing their government debt-to-GDP ratios and ensuring a gradual decline in indebtedness over the longer term.”

The OECD had projected that the economies in its membership would grow by 1.4 percent this year, and 2.3 percent in 2014.

Both the U.S. and Japan are projected to grow at a modest clip, with American GDP expected to rise at 1.9 percent in 2013 and 2.8 percent in 2014. Japan’s economy, the OECD says, will grow 1.6 percent this year and 1.4 percent next year.

In all, the group projects the world’s gross domestic product to rise by 3.1 percent this year, and 4 percent in 2014, due in large part from growth in non-OECD countries like China and India.

Recent economic data in the U.S. has shown a bounce back in the housing market, even as the economy is absorbing spending cuts and higher taxes.