The Organisation of Economic Co-operation and Development (OECD) blamed the turmoil on global financial markets on the US sub-prime mortgage crisis today as it cut its forecast for world economic growth.

In a mid-point assessment, the Paris-based think tank said the world’s seven leading economies - the G7 - would grow by just 2.2 per cent this year, down 0.1 per cent on earlier predictions.

Jean-Philippe Cotis, chief economist at the OECD, cautioned that the risks of even lower growth were “ominous” given that financial market conditions were likely to remain tighter.

He added that while lessons were likely to learned from the mistakes of the credit crunch, it was clear that there was a need for improved regulation to correct “serious imperfections” in both the US housing and global financial markets.

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Mr Cotis said that this should include a more active fight against “predatory lending”, as well as “more pugnacious” rating agencies.

“Markets will learn from recent mistakes through the usual ‘learning-by-doing’ process, but such progress may nonetheless be enhanced by improved regulation,” he said.

Of the leading G7 economies, the US is expected to grow at 1.9 per cent, against earlier projection of 2.2 per cent, as the housing sector exerts a "longer and more potent than expected drag".

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