OECD downgrades 2018, 2019 forecast for global economy to 3.7%
Arirang News
2018-09-21
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The Organization for Economic Cooperation and Development downgraded its forecast for the global economy... citing escalating trade tensions and tightening financial conditions in emerging markets.
Although the U.S. is the source of those trade frictions... it had the brightest outlook among the OECD's major developed economies.
Kim Ji-yeon reports.
The OECD has lowered its 2018 forecast for the global economy from its May projections by zero-point-one-percentage-point to 3-point-7-percent... citing escalating trade tensions and tightening financial conditions in emerging markets.
According to its biannual Interim Economic Outlook report released on Thursday... that focuses on the growth outlook of the G20 group of industrialised countries... the OECD lowered its 2019 projection for the global economy by zero-point-two-percentage-points to 3-point-7-percent for the same reasons.
The U.S. was expected to be the fastest growing of the G7 group in 2018... maintaining its 2-point-9-percent growth projection for this year.... thanks to tax cuts, government spending and steady job growth.
The OECD cut its forecasts for the two biggest eurozone economies of Germany and France... mainly due to sluggish demand following an industrial recession.
The thinktank projected Japan to stay on course to maintain its one-point-two-percent growth rate for this year and next year... on expanded investments... but said recovery in consumption remains weak.
The OECD meanwhile lowered its 2018 forecast for the Korean economy by zero-point-three-percentage-points to two-point-seven-percent... and downgraded its 2019 forecast by zero-point-two-percentage-points to 2-point-8-percent.
The thinktank said Korea's domestic consumption remains steady despite intensifying global trade tensions... but advised the local government to pursue expansionary fiscal policies to help raise household income.
It also said that China's weaker currency had so far helped the country absorb the impact of higher U.S. tariffs, leaving its forecasts for the Chinese economy unchanged at 6-point-7-percent for this year and 6-point-4-percent for next year.
Kim Ji-yeon, Arirang News.
Although the U.S. is the source of those trade frictions... it had the brightest outlook among the OECD's major developed economies.
Kim Ji-yeon reports.
The OECD has lowered its 2018 forecast for the global economy from its May projections by zero-point-one-percentage-point to 3-point-7-percent... citing escalating trade tensions and tightening financial conditions in emerging markets.
According to its biannual Interim Economic Outlook report released on Thursday... that focuses on the growth outlook of the G20 group of industrialised countries... the OECD lowered its 2019 projection for the global economy by zero-point-two-percentage-points to 3-point-7-percent for the same reasons.
The U.S. was expected to be the fastest growing of the G7 group in 2018... maintaining its 2-point-9-percent growth projection for this year.... thanks to tax cuts, government spending and steady job growth.
The OECD cut its forecasts for the two biggest eurozone economies of Germany and France... mainly due to sluggish demand following an industrial recession.
The thinktank projected Japan to stay on course to maintain its one-point-two-percent growth rate for this year and next year... on expanded investments... but said recovery in consumption remains weak.
The OECD meanwhile lowered its 2018 forecast for the Korean economy by zero-point-three-percentage-points to two-point-seven-percent... and downgraded its 2019 forecast by zero-point-two-percentage-points to 2-point-8-percent.
The thinktank said Korea's domestic consumption remains steady despite intensifying global trade tensions... but advised the local government to pursue expansionary fiscal policies to help raise household income.
It also said that China's weaker currency had so far helped the country absorb the impact of higher U.S. tariffs, leaving its forecasts for the Chinese economy unchanged at 6-point-7-percent for this year and 6-point-4-percent for next year.
Kim Ji-yeon, Arirang News.
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