OECD sees global growth slowing, as Europe weakens and risks persist

OECD Europe 2019

(OECD, 2019)

The global economy is slowing and major risks persist, with growth weakening much more than expected in Europe, according to the OECD’s latest Interim Economic Outlook.‌

Economic prospects are now weaker in nearly all G20 countries than previously anticipated. Vulnerabilities stemming from China and the weakening European economy, combined with a slowdown in trade and global manufacturing, high policy uncertainty and risks in financial markets, could undermine strong and sustainable medium-term growth worldwide.

The OECD projects that the global economy will grow by 3.3 per cent in 2019 and 3.4 per cent in 2020. The outlook and projections cover all G20 economies. Downward revisions  from the previous Economic Outlook in November 2018 are particularly significant for the euro area, notably Germany and Italy, as well as for the United Kingdom, Canada and Turkey.

The Outlook identifies the Chinese and European slowdown, as well as the weakening of global trade growth, as the principal factors weighing on the world economy. It underlines that further trade restrictions and policy uncertainty could bring additional adverse effects on global growth. While policy stimulus is expected to help offset weak trade developments in China,  risks remain of a sharper slowdown that would hit global growth and trade prospects.

“The global economy is facing increasingly serious headwinds,” said OECD Chief Economist Laurence Boone. “A sharper slowdown in any of the major regions could derail activity worldwide, especially if it spills over to financial markets. Governments should intensify  multilateral dialogue to limit risks and coordinate policy actions to avoid a further downturn,” Ms Boone said.

The Outlook calls on central banks to remain supportive, but stresses that monetary policy alone cannot resolve the downturn in Europe or improve the modest medium-term growth prospects. A new coordinated fiscal stimulus in low-debt European countries, together with renewed structural reforms in all euro area countries would add momentum to a growth rebound, boost productivity and spur wage growth over the medium term.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Factory workers are facing a mental health crisis. Here’s how to respond

UN chief hails ‘positive developments’ towards ending political crisis in Bolivia

Russia accepts what the EU has to offer and settles to negotiate with Ukraine

This lethal fungus is threatening to wipe out the world’s bananas

Why India can show us how to achieve growth with purpose

4 ways the way we make things can change for a sustainable world

Coronavirus: Commission presents practical guidance to ensure continuous flow of goods across EU via green lanes

Here’s why e-mobility must be at the heart of the green recovery

Parliament wants to suspend EU accession negotiations with Turkey

Yemen: 11 more ‘terrible, senseless’ civilian deaths reported, following attack in Sana’a – top UN official

Here’s how we solve the global crisis of tribalism and democratic decay

A small group of world leaders are standing together against inequality

Israel @ MWC14: Israel The Start App Nation

In a state of war: COVID-19 and psychiatric support

The green hydrogen revolution has started, and it won’t be stopped

Venezuela must guarantee judicial impartiality – UN human rights expert

3 strategies for Africa to thrive in this new era of globalization

Trade is not a weapon. Let’s not use it as one

Why we need to redefine trust for the Fourth Industrial Revolution

MWC 2016 LIVE: Ingenu steps up efforts to build LPWA networks across the globe

The Future of Balkans: Embracing Education

Why we need artists who strive for social change

Global leaders and companies pledge to reduce the gender pay gap by 2030

Fair minimum wages: Commission launches second-stage consultation of social partners

How bad is the Eurozone economy? The ECB thinks too bad

Asymptomatic, pre-symptomatic, symptomatic: what is the difference?

Burkina Faso : The EU reaffirms its support during this humanitarian and security crisis

Preferential tariffs to help Western Sahara to develop

Commission celebrates the 30th anniversary of the Jean Monnet Activities promoting European studies worldwide

Quantum leap: why the next wave of computers will change the world

Four ways innovation can help to beat heart disease

India m2m + iot Forum Hosts Successful 4th Editions of India Smart Cities Forum and India Smart Villages Forum

A very good morning in European markets

Financial services: Commission sets out its equivalence policy with non-EU countries

You can live up to 10 years longer by doing these 5 things

We now know how much ice Antarctica has lost in the last 25 years – three trillion tonnes

International Women’s Day 2019: more equality, but change is too slow

Hungary: Commission takes next step in the infringement procedure for non-provision of food in transit zones

EU unfolds strategy on the Egypt question

The European Youth explains the age gap in European business in the 21st century

How to have a good Fourth Industrial Revolution

FROM THE FIELD: ‘Blue’ finance flows in the Seychelles

The Swiss will pay dearly for voting out fellow Europeans

UN chief urges restraint following reported Saudi-led assault in Yemen

Brazil: A strategic partner for the EU

A day in the life of a Venezuelan migrant in Boa Vista, Brazil

Malaria could be gone by the middle of the century. Here’s how

‘Eco-shaming’ is on the rise, but does it work?

Countries must up their game to reduce low birth weights, warns UN-backed report

A question of trust: the UN political chief working behind the scenes to prevent tomorrow’s wars

Tackling terrorism: MEPs approve tighter rules on homemade explosives

Refugee crisis update: Commission is struggling alone with little help from EU or G7 leaders

These innovations could keep us cool without warming the planet

Why this city is paying people to move there

Scaling for success: SMEs, tech innovations and the ITU Telecom World Awards 2019, in association with The European Sting

Air Pollution Control: Does Your Action Matter?

Nicaragua crisis: One year in, more than 60,000 have fled, seeking refuge

European Parliament strengthens EU consumer protection rules

Australian homes are turning to solar power in record numbers

The global response to the coronavirus pandemic must not be undermined by bribery

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s