Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

OECD: Global economy increasingly fragile

OECD: Global economy increasingly fragile

The Organisation for Economic Cooperation and Development is the latest financial body to issue a warning that the global economy is weakening.

In its latest Interim Economic Outlook, released last month, the Paris-based organisation called the global economy “increasingly fragile and uncertain” and announced that trade tensions and political upheaval may lead to the worst year since the 2009 global financial crisis.

“The global economy is facing increasingly serious headwinds, and slow growth is becoming worryingly entrenched,” OECD chief economist Laurence Boone said in explaining why the organisation was cutting the predictions it made in its last outlook four months ago.

“The uncertainty provoked by the continuing trade tensions has been long-lasting, reducing activity worldwide and jeopardising our economic future.”

The OECD predicted the global economy would grow by 2.9 percent in 2019 and three percent in 2020, which would mean the weakest annual growth rates since 2009. The report, which included all G-20 economies, placed the blame on escalating trade conflicts, which are harming investor confidence. Policy uncertainty, such as the prospect of a no-deal Brexit with the potential to push the United Kingdom into a recession and weaken growth throughout Europe, has aggravated the perceived risks in financial markets and exacerbated the poor growth, according to the organisation.

Manufacturing was the industry suffering the most in the OECD’s outlook, with a trade war between the United States and China negatively impacting employment growth and household spending. As the Chinese economy also slows, tension between high debt and deteriorating credit are combining to hurt future growth. Countries subject to this year’s decline in global trade
and investment are most affected, according to the OECD. Locally, although the VI economy did not factor into the report, the dismal Q2 incorporation numbers could indicate that the territory is beginning to feel the impact.


Call for action


In the past two weeks, the organisation has joined a chorus that also includes the US Federal Reserve, the People’s Bank of China, the European Central Bank and others in pushing governments for stronger fiscal and structural policy support, saying there is not much more they can do to head off crisis as economic prospects weaken in both advanced and emerging economies.

Fiscal policy must play a large role in preventing the downturn, according to the organisation, which stressed the importance of taking advantage of extremely low long-term interest rates for broader public investment and increased spending.

“Our fear is that we are entering an era where growth is stuck at a very low level,” Ms. Boone said. “Governments should absolutely take advantage of low rates to invest in the future now so that this sluggish growth doesn’t become the new normal.”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×