Trade tensions cloud best global growth outlook in seven years: OECD

OECD urges world to play by trade rules as tariff row rages

The UK will be the slowest-growing economy in the G20 barring South Africa if the OECD's predictions come through, with growth well behind the 2.2 per cent average expected in the Eurozone or the 2.5 per cent annual expansion in the US.

As downside risks, the report cited persisting gestures of trade protectionism, the normalization of monetary policies in key countries, demographic changes and a decrease in mid- and long-term investment.

Robust exports to Asia and the effect of a supplementary budget for fiscal 2017 through March will help support Japan's economic growth, the OECD said as it lifted its forecasts for the world's third biggest economy also for both years.

The world's largest economy is expected to grow 2.9 percent this year and 2.8 percent next year.

This is up from a forecast last November of 3.7% in 2018 and 3.6% in 2019.

The OECD said high inflation would eat into United Kingdom household income while business investment would slow in the face of uncertainty over Britain's future relationship with the EU.

Updating its outlook for the G20, the OECD, which groups 34 of the world's leading economies, raised its global growth forecast for 2018 and 2019 to 3.9 percent - the highest since 2011 - from a previous estimate of 3.6 percent for both years. Britain will be the slowest growing major economy, expanding just 1.3 per cent, with investment slowing "amidst continued uncertainty" about Brexit.

"We think the stronger economy is here to stay for the next couple of years", acting OECD chief economist Alvaro Pereira told Reuters."We are getting back to more normal circumstances than what we've seen in the last 10 years".

The OECD's latest economic outlook showed all but one G20 nation - Russian Federation - was set to grow at a faster pace this year than predicted last November.

The European Commission vowed to retaliate if hit by the tariffs. "Safeguarding the rules-based worldwide trading system is key".

A full-blown trade war could cost the global economy US$470 billion by 2020, according to analysis by Bloomberg Economics.

On its latest forecasts, the OECD said "stronger investment, the rebound in global trade and higher employment are helping to make the recovery increasingly broad-based".

"Any escalation, any retaliation or a tit-for-tat type of scenario would be very damaging", he said.

"Governments should avoid escalation and rely on global solutions to resolve excess capacity in the global steel industry".

Related News:

  • Numis Securities Reiterates Add Rating for Tp Icap (TCAP)

    Numis Securities Reiterates Add Rating for Tp Icap (TCAP)

    One equities research analyst has rated the stock with a hold rating and seven have issued a buy rating to the company's stock. The firm operates through Well Construction, Well Completion, Well Intervention, and Exploration and Production divisions.
    Sevilla prepared to 'suffer' against Man United at Old Trafford - Montella

    Sevilla prepared to 'suffer' against Man United at Old Trafford - Montella

    On announcing his decision to retire, Carrick said: "I think it's pretty much already been said, to be honest with you". It's something you've got to accept so that's where I am at.
    Stock Grabbing Investor's Attention: Oclaro Inc (OCLR)

    Stock Grabbing Investor's Attention: Oclaro Inc (OCLR)

    Looking at some alternate time periods, the 12 month price index is 0.91813, the 24 month is 1.88249, and the 36 month is 4.87578. Currently Oclaro Inc (NASDAQ: OCLR)'s shares owned by insiders are 2.8%, whereas shares owned by institutional owners are 69.7%.
  • CM Punk's Second UFC Fight Booked for UFC 225 in Chicago

    CM Punk's Second UFC Fight Booked for UFC 225 in Chicago

    The UFC hyped up CM Punk's debut and it helped to sell a lot of pay-per-views as Punk had a massive fan following in the WWE . It's looking more and more likely that CM Punk's sophomore Octagon appearance will take place at UFC 225 .
    BTS: The full on action of the Baaghi 2 Trailer

    BTS: The full on action of the Baaghi 2 Trailer

    But a set of people who were expecting a sneak peek at Tiger and Disha's chemistry were a tad bit disappointed. The film brings to celluloid the charming Tiger Shroff and Disha Patani together for the very first time.
    Where could Kim Jong Un meet Donald Trump?

    Where could Kim Jong Un meet Donald Trump?

    Suh is set to meet Japanese Prime Minister Shinzo Abe and Chief Cabinet Secretary Yoshihide Suga on Tuesday, the spokesman added. Tensions have risen in the past few months as the Asian nation increased its missile testing up until last month.
  • More information about the unannounced Asus ZenFone 5 Max appears in benchmark

    More information about the unannounced Asus ZenFone 5 Max appears in benchmark

    According to the Geekbench listing, the phone in question is powered by a Qualcomm Snapdragon 660 SoC with 4GB RAM. As reported previously , the device received its Wi-Fi certification and now it has been spotted on Geekbench.
    Roger Federer backs Novak Djokovic to improve after poor comeback

    Roger Federer backs Novak Djokovic to improve after poor comeback

    Djokovic scrambled to win the second set on Sunday but the rust from the layoff was evident as he made 62 unforced errors overall. Krajinovic reacted well to Federer's first blow, breaking back immediately after going 2-0 down at the beginning of the match.
    Nebraska basketball gets second 'slap in the face' in NIT seeding

    Nebraska basketball gets second 'slap in the face' in NIT seeding

    Arizona State is 21-12 going into the NCAA Tournament and got into the postseason as a Pac-12 at-large team . The games will be divided into four 10-minute quarters as opposed to two 20-minute halves.
  • Man Utd employee reveals the truth following Jose Mourinho's claim about Rashford

    Man Utd employee reveals the truth following Jose Mourinho's claim about Rashford

    Accordingly, the 20-year-old has yet again impressed the fans by registering a brace against Liverpool in his side's recent clash. It also shows that Rashford - despite falling out of favour recently - is definitely getting the game-time needed to develop.
    Merkel hopes for talks with U.S.  on tariffs

    Merkel hopes for talks with U.S. on tariffs

    But he said that the allies "are in a position to work constructively together and govern decently". Meanwhile, the world awaits more news on kind gestures between politicians.
    UCLA Set to Face St. Bonaventure in Battle of the 11-Seeds

    UCLA Set to Face St. Bonaventure in Battle of the 11-Seeds

    DID YOU KNOW: Florida, which awaits the victor of the play-in game, has beaten UCLA three times in the NCAA Tournament since 2006. The key player for the Bruins will be Aaron Holiday the Pac-12 leading scorer at 20.8 ppg and second in assists with 5.8 apg.


Most liked

Xiaomi rolls out MIUI 9 stable ROM for all compatible devices
Xiaomi India VP and India MD Manu Kumar Jain on Monday announced the availability of MIUI 9 to all compatible devices in India. Xiaomi has finally completed the MIUI 9 Global ROM release program for all the eligible Mi and Redmi series phones.

BBC urges United Nations to help protect rights of its Iranian staff
The BBC's Farsi-language service was barred from operating in Iran after the country's disputed 2009 presidential election.

Mourinho: Anything is possible if United reach Champions League quarters
There were, however, wins against both Malaga and Athletic Bilbao in between that sandiwch of defeats. With Pogba missing, Mourinho could well go for the same starting line-up as we saw against Liverpool.

Craig Mack has reportedly died at age 46
Mack released his second album " Operation: Get Down " in 1997 before quitting music to devote his life to religion. It was only just recently that the much beloved Rick Ross [VIDEO ] was reportedly in the hospital on life support.

President Trump set to meet Kim Jong-un with no conditions
Kim may offer to give up his nukes for USA forces' pullout from South Korea and a signed peace treaty. For the United States , the coming talks may finally end the threat of a nuclear attack on U.S. soil.

Notre Dame Basketball: Irish will be a 1-seed in the NIT
USC has won six of eight heading into Tuesday night's game against UNC Asheville in its first NIT appearance since 1999. The national semifinals are March 30 at 7 p.m. and 9:30 p.m., and the national championship game is April 1 at 6 p.m.

Championship Review: Villa stun leaders Wolves
Villa are now occupying the 3rd position on the Championship table with 69 points and will play QPR on Tuesday. The hosts have won eight of their last 10 league games and have only lost one home game this campaign.

Nicole Kidman sets new series 'The Undoing' at HBO
For HBO, The Undoing joins a roster of drama originals that also includes Game of Thrones, Westworld, The New Pope , J.J. And it wasn't just the network excited to see the adaptation take off, with Nicole sharing her excitement as well.

Trump tariffs trigger Republican rebellion
Host Chuck Todd then asked Flake whether a Republican should challenge Trump, assuming he seeks the presidential nomination again. Flake, an Arizona Senator who has been frequently critical of Trump's antics, is not running for reelection.

South Africa win second Test against Australia to level series
Injured allrounder Mitch Marsh shelled a simple slips catch when South Africa were 0-7 in the second over of the run chase. Cricket South Africa (CSA) immediately announced they had 48 hours to appeal the decision and were seeking legal opinion.

White House expects North Korea summit to happen despite Pyongyang's silence
South Korea and North Korea also agreed to hold what would be their third summit in history in late April. White House spokesman Raj Shah said no location has been determined for the talks, but it's unlikely Mr.

Broncos DE Adam Gotsis Arrested On Rape Charge
According to the victim, she met Gotsis through a mutual friend and the two ended up attending a party together in March 2013. A spokeswoman for the Fulton County Jail said Gotsis was released after paying a $50,000 bond, according to The Post .

Coutinho On Neymar Rumours
The club, owned by Oryx Qatar Sports Investments, has put together a collection of star players and there aren't many bigger than Neymar .

Parent to sell TCS stake
Tata Sons had also raised $1.5 billion through the external commercial borrowing route, part of which was used to repay the loans. Tata Sons, which holds about 74% in TCS, will sell the software biggie's shares at a price between Rs 2,872 and Rs 2,925 apiece.

Colombians vote in elections seen as test for peace deal
Their projected low performance is in part due to public outrage at the atrocities they committed throughout the conflict. Since the Farc took up arms against the state in 1964, some 220,000 people were killed and over seven million displaced.