OECD predicts slowest global growth since GFC
By Iain Gilbert
Date: Thursday 19 Sep 2019
(Sharecast News) - Global economic growth is at risk of entering a new, lasting low growth phase if governments remain on the sidelines, according to the Organization for Economic Cooperation and Development.
The OECD warned on Thursday that the global economy was set to witness its weakest growth since the global financial crisis of 2008-2009, slowing from 3.6% in 2018 to 2.9% in 2019. It also predicted growth of just 3.0% in 2020.
The Paris-based group felt the outlook had gotten worse since last updating its forecasts back in May, when it estimated the global economy would expand by 3.2% and 3.4% in 2019 and 2020, respectively.
The OECD said the revisions to its estimates were the result of what appeared to be temporary trade tensions becoming a long-lasting new state of relationship between superpowers.
Trade growth, which had been at the forefront of the global recovery following the crisis fell from 5% in 2017 into negative territory as trade tensions also weighed on business confidence, lowering investment growth from 4% in 2017 to just 1%.
The OECD predicted the US economy will grow 2.4% in 2019 and 2.0% in 2020, instead of the 2.8% and 2.3%, respectively, it had forecast earlier in the year.
China was also set to suffer as the second-biggest economy was predicted to grow 6.1% in 2019 and 5.7% in 2020, down from the OECD estimates of 6.2% and 6.0% in May.
The OECD also issued a dire warning for the UK, forecasting British growth of 1% in 2019 and of 0.9% in 2020 if Britain manages to leave the EU smoothly with a transition period, but if Britain left without a deal, then the economy was said to be on track to grow at 2% lower pace than otherwise expected.
Euro zone growth was seen at 1.0% - down from 1.2% in May.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN