The Organisation for Economic Co-operation and Development (OECD) expects global GDP growth rate to slow down by 0.1 percent in 2019 compared to previous projections to 3.2 percent, which will be 0.3 percent less than in 2018
MOSCOW (Pakistan Point News / Sputnik - 21st May, 2019) The Organisation for Economic Co-operation and Development (OECD) expects global GDP growth rate to slow down by 0.1 percent in 2019 compared to previous projections to 3.2 percent, which will be 0.3 percent less than in 2018.
"Global GDP growth is projected to ease from 3 per cent in 2018 to a sub-rate of 3.2% this year, before ending up to 3.4% in 2020. This slowdown is widespread, with growth set to moderate this year in almost all economies," the OECD said in its Economic Outlook, published on the official website of the organization.
According to the OECD, the slowdown is caused by a sharp decrease in trade and investment activities, notably in China and Europe, and by lack of business and consumer confidence, among other factors, amid ongoing trade tensions.
"At the same time, financial market conditions have eased, helped by moves towards a more accommodative monetary policy stance in many economies, and favorable labour market conditions continue to support household incomes and spending in the major economies," the report added.
Trade growth is expected to continue weakening throughout 2019 as well, possibly falling to around 2 percent, which could become its lowest rate since the 2008 financial crisis.
