- Title: OECD cuts growth outlook to post-crisis low
- Date: 19th September 2019
- Summary: ZHOUSHAN, ZHEJIANG PROVINCE, CHINA (FILE - APRIL 24, 2018) (REUTERS) CONTAINERS AT PORT VARIOUS OF CRANES MOVING CONTAINERS DONGGUAN, GUANGDONG PROVINCE, CHINA (FILE - OCTOBER 17, 2018) (REUTERS) VARIOUS OF WORKERS WORKING ON LITHIUM ION BATTERY PRODUCTION LINE
- Embargoed: 3rd October 2019 11:38
- Keywords: OECD economy trade tensions United States China slowdown GDP
- Location: ZHOUSHAN, ZHEIJIANG PROVINCE AND DONGGUAN, GUANGDONG PROVINCE, CHINA / OSAKA, JAPAN / PARIS, FRANCE
- City: ZHOUSHAN, ZHEIJIANG PROVINCE AND DONGGUAN, GUANGDONG PROVINCE, CHINA / OSAKA, JAPAN / PARIS, FRANCE
- Country: France
- Topics: Government/Politics,International Trade
- Reuters ID: LVA001AXBQCEF
- Aspect Ratio: 16:9
- Story Text: The trade war between the United States and China has plunged global growth to its lowest levels in a decade, the OECD said on Thursday (September 19) as it slashed its forecasts.
The Organisation for Economic Cooperation and Development said that the global economy risked entering a new, lasting low-growth phase if governments continued to dither over how to respond.
The global economy will see its weakest growth since the 2008-2009 financial crisis this year, slowing from 3.6% last year to 2.9% this year before a predicted 3.0% in 2020, the OECD said.
The Paris-based policy forum said the outlook had taken a turn for the worse since it last updated its forecasts in May, when it estimated the global economy would grow 3.2% this year and 3.4% in 2020.
OECD Chief Economist Laurence Boone said that there was evidence that the trade standoff was taking its toll on the U.S. economy, hitting some manufactured products and triggering farm bankruptcies.
The world's biggest economy would grow 2.4% this year and 2.0% next year instead of the 2.8% and 2.3% respectively that the OECD had forecast in May.
China would also feel the pain with the second-biggest economy growing 6.1% in 2019 and 5.7% in 2020, outlooks the OECD cut from 6.2% and 6.0% previously.
Meanwhile, uncertainty over government policies was also hitting the outlook for Britain as it lurches towards leaving the European Union.
The OECD forecast British growth of 1% in 2019 and 0.9% in 2020, but only if it left the EU smoothly with a transition period, a far from certain conclusion at this stage. The OECD had forecast in May growth of 1.2% and 1.0%.
(Production: Ardee Napolitano, Antony Paone)
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