The OECD has once again lowered its global growth forecast, citing trade tensions and political uncertainty. The organization projects global growth to be 2.9% for 2019 and 3.0% for 2020. This marks a further downward revision from previous forecasts.
The Organization for Economic Cooperation and Development (OECD) has revised its global growth forecasts downward for the second time this year, pointing to persistent trade tensions, political uncertainty, and weakening investment as key factors.
In its latest Economic Outlook, the OECD projects global GDP growth of 2.9% for 2019 and 3.0% for 2020. These figures represent a further reduction from the organization’s previous forecasts released in May.
The report highlights several risks to the global economy, including:
- Escalating trade disputes between major economies
- Uncertainty surrounding Brexit
- Geopolitical tensions
- Slower growth in China
The OECD also expressed concern about the effectiveness of monetary policy in stimulating growth, suggesting that governments should focus on structural reforms and fiscal policies to boost demand.
Specific country forecasts were also adjusted. The U.S. is expected to grow at 2.3% in 2019 and 2.0% in 2020. The Eurozone is projected to expand by 1.1% in 2019 and 1.2% in 2020. China’s growth is forecast at 6.2% in 2019 and 5.7% in 2020.
The OECD urged policymakers to take coordinated action to address the challenges facing the global economy and to avoid further escalation of trade tensions.