Rising trade tensions and uncertainty are weakening global growth, says OECD

The international organisation says escalating trade conflicts are taking an increasing toll.

According to the Organisation for Economic Co-operation and Development’s (OECD) latest Interim Economic Outlook the global economy has become increasingly fragile and uncertain, with growth slowing and downside risks continuing to mount.

The international organisation says escalating trade conflicts are taking an increasing toll on confidence and investment, adding to policy uncertainty, aggravating risks in financial markets and endangering already weak growth prospects worldwide.

The OECD projects that the global economy will grow by 2.9% in 2019 and 3% in 2020 – the weakest annual growth rates since the financial crisis, with downside risks continuing to mount.

“The global economy is facing increasingly serious headwinds and slow growth is becoming worryingly entrenched,” said OECD Chief Economist Laurence Boone. “The uncertainty provoked by the continuing trade tensions has been long-lasting, reducing activity worldwide and jeopardising our economic future. Governments need to seize the opportunity afforded by today’s low interest rates to renew investment in infrastructure and promote the economy of the future,” Ms Boone said.