The global economy faces significant downside risks, according to the Organisation for Economic Co-operation and Development (OECD). In its latest Interim Economic Outlook, the OECD highlights concerns about rising protectionism and policy uncertainty, particularly related to the new US administration.

Key Concerns

• Protectionism: The OECD warns that increased protectionist measures could significantly harm global trade and investment, hindering economic growth.
• Policy Uncertainty: Uncertainty surrounding the policies of the new US administration is creating volatility and dampening business confidence.

OECD Recommendations

To mitigate these risks and boost economic growth, the OECD recommends that governments:

• Implement structural reforms to improve productivity and competitiveness.
• Adopt fiscal policies that support demand and investment.
• Promote inclusive growth to ensure that the benefits of economic expansion are shared by all.

Growth Projections

Despite the downside risks, the OECD projects that the global economy will grow at a moderate pace in the coming years. However, the organization emphasizes that these projections are subject to considerable uncertainty.

Regional Outlook

The OECD’s Interim Economic Outlook provides a detailed analysis of the economic prospects for various regions and countries, highlighting both opportunities and challenges.