OECD Warns of Global Economic Slowdown

Paris based OECD sees the global economy tumbling to weakest growth rates for the decade. The organisation has scratched economic forecasts made 4 months ago amidst international trade wars between USA and China. World growth is slated for a mere 2.9% for the current year.

Crux of the Matter

1. A two-way trade war between China and USA has hurt manufacturing and brought on a global economic crisis.

2. Additional risks to investor confidence arise from slowdown in China and a fear of Brexit causing recessions in UK.

3. Recently financial institutions like the Federal Reserve, the People’s Bank of China and the European Central Bank have also portrayed a negative outlook and have started easing policies to boost demand.

4. OECD’s Laurence Boone expressed fear of the world entering a low growth era and urged governments to leverage low rates to invest in the future.

5. The services industry has so far been resilient to the down turn.

Curiopedia

OECD – The Organisation for Economic Co-operation and Development is an intergovernmental economic organisation with 36 member countries, founded in 1961 to stimulate economic progress and world trade. It is a forum of countries describing themselves as committed to democracy and the market economy, providing a platform to compare policy experiences, seek answers to common problems, identify good practices and coordinate domestic and international policies of its members. The OECD is an official United Nations observer. More Info

Curated Coverage

1. Livemint – Global economy seen sliding towards weakest growth in a decade: OECD

2. CNN – Global economy: Economists predict the world’s lowest growth in a decade

3. Bloomberg – OECD Cuts Economy Forecasts and Sees Lowest Growth in Decade

#Economy #World