By Martin Fell

Growth in all the world's major economies is set to slow down as turmoil in the financial markets continues.

According to the Organisation for Economic Co-operation and Development (OECD), economic momentum appears to be slowing.

The OECD has seen its composite leading indicator fall for the seventh consecutive month. It is now at its lowest level since December 2009.

In an official statement, the OECD said: "Compared to last month's assessment, the CLIs point more strongly to slowdowns in all major economies."

Speaking to the Daily Telegraph, Howard Archer, chief UK and European economist at IHS Global Insight said that the UK's economy could even start to shrink.

"We assume the economy will be stagnant in the final quarter of 2011 and early months of 2012 and we certainly would not rule out modest contraction," he told the news provider.

The Bank of England recently slashed the UK's growth forecast to just one per cent as fears of a double-dip recession in the country grew.