OECD sees global economy slipping towards weakest growth in a decade

OECD cuts forecasts to the global economy, warns of entrenched uncertainty

Global

  • 2019 global GDP growth at 2.9% (previously 3.2%)

  • 2020 global GDP growth at 3.0% (previously 3.4%)

  • 2019 US GDP growth at 2.4% (previously 2.8%)

  • 2020 US GDP growth at 2.0% (previously 2.3%)

  • 2019 China GDP growth at 6.1% (previously 6.2%)

  • 2020 China GDP growth at 5.7% (previously 6.0%)

  • 2019 Eurozone GDP growth at 1.1% (previously 1.2%)

  • 2020 Eurozone GDP growth at 1.0% (previously 1.4%)

  • 2019 Japan GDP growth at 1.0% (previously 0.7%)

  • 2020 Japan GDP growth at 0.6% (unchanged)

  • 2019 UK GDP growth at 1.0% (previously 1.2%)

  • 2020 UK GDP growth at 0.9% (previously 1.0%)

Those are quite the amount of downgrades relative to its May forecast.

OECD says that trade tensions are the main cause for a more fragile and uncertain outlook to the global economy. Noting that intensifying trade conflicts and governments not doing enough to prevent damage will hurt global growth momentum going into next year.

The 2.9% forecast for global growth this year is the weakest projection since the financial crisis, almost a decade ago.