OECD sees global economy slipping to weakest growth in a decade
(VOVWORLD) - The trade war between the US and China has plunged global growth to its lowest levels in a decade, the Organisation for Economic Cooperation and Development (OECD) said on Thursday as it slashed its forecasts.
 US President Donald Trump (right) and Chinese President Xi Jin-ping (Photo: VNEconomy) |
In its interim economic outlook, the agency cut its global GDP forecast to 2.9% this year, a downgrade of 0.3 percentage points, and its growth forecast for 2020 was reduced by 0.4 percentage points to 3%. The OECD said this is the weakest growth since the 2008-2009 financial crisis, adding that the risks are rising. Escalating trade tensions are taking an increasing toll on confidence and investment, adding to market uncertainty, and endangering future growth prospects, according to the OECD. The global economy risks entering a new, lasting low-growth period if governments continued to dither over how to respond. The organization said collective effort is urgent to halt the build-up of trade-distorting tariffs and subsidies and to restore a transparent and predictable rules-based system that encourages businesses to invest.