While broadly more optimistic, the OECD warns of trade tensions and Brexit
Paris — Trade tensions are threatening the best global economic growth outlook in seven years, the Organisation for Economic Co-operation and Development (OECD) said on Tuesday. The organisation also said that four US rate rises were likely this year as tax cuts stoked the world’s biggest economy, while Brexit would drag on Britain. While broadly more optimistic than only a few months ago, the OECD warned a trade war could threaten the outlook, and forecast that UK growth would lag all Group of 20 (G-20) countries due to Brexit uncertainties. Updating its outlook for the G-20, the OECD, which groups 34 of the world’s leading economies, raised its global growth forecast for 2018 and 2019 to 3.9% — the highest since 2011 — from a previous estimate of 3.6% for both years. The higher forecast was in part due to the expectation that US tax cuts would boost economic growth there, it said. "We think the stronger economy is here to stay for the next couple of years," acting OECD chief econo...
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