The Paris-based organisation said in its latest outlook on the global economy released yesterday that the country's gross domestic product (GDP) would also drop to 1.7 percent next year from 2 percent.
OECD said South Africa needed a strategy to increase job creation and growth.
“It should focus on investment in infrastructure and implementation of structural reforms such as strengthening and broadening competition. Developing labour intensive sectors like tourism can further support job creation,” OECD said.
“Investment is projected to pick up progressively, albeit from historically low levels, as a clarification of the reform agenda following the recent general election is expected to support confidence.”