OECD says no sign of sharp downturn for global growth
The Organisation for Economic Co-operation and Development has, however, cut its outlook for countries at risk, such as Brazil, Russia, Turkey and SA
Paris — Trade tensions and higher interest rates are slowing the global economy, though for now there are no signs of a sharp downturn, the Organisation for Economic Co-operation and Development (OECD) said on Wednesday, lowering its outlook for next year. The OECD forecasts that global growth will slow from 3.7% this year to 3.5% in 2019 and 2020. It had previously projected 3.7% for 2019. The global growth slowdown will be the worst in non-OECD countries, with many emerging-market economies likely to see capital outflows as the US Federal Reserve gradually raises interest rates. The OECD cut its outlook for countries at risk, such as Brazil, Russia, Turkey and SA. Rising interest rates could also spur financial markets to reconsider and thus reprice the risks to which investors are exposed, triggering a return to volatility, the OECD said. “We’re returning to the long-term trend. We’re not expecting a hard landing, however, there are a lot of risks. A soft landing is always diffic...
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