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

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

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:

  • Mourinho: Anything is possible if United reach Champions League quarters

    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.
    President Trump set to meet Kim Jong-un with no conditions

    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.
    Championship Review: Villa stun leaders Wolves

    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.
  • 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.
    Lok Sabha adjourned till noon

    Lok Sabha adjourned till noon

    The House has been witnessing frequent disruptions since March 5, when the second leg of the Budget Session of Parliament began. Within three minutes of assembling, the Speaker adjourned proceedings till 1200 hrs, without conducting Question Hour.
  • 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.
    Bollywood singer Aditya Narayan arrested after car hits rickshaw, gets bail

    Bollywood singer Aditya Narayan arrested after car hits rickshaw, gets bail

    Aditya has been at the centre of another controversy before, when he had misbehaved with the staff of Indigo staff few months ago. Aditya Narayan last time was in the news for abusing private airlines employee and one video of that incident even went viral.
    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%.
  • Man United's Carrick to hang up his boots at end of season

    Man United's Carrick to hang up his boots at end of season

    Carrick has won 18 trophies in 12 years at United, including five Premier League titles and the Champions League in 2008. "But he trained a little bit".
    Notre Dame Basketball: Irish will be a 1-seed in the NIT

    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.
    Trump orders tariffs on steel, aluminum imports

    Trump orders tariffs on steel, aluminum imports

    US steel and aluminum producers - and their counterparts around the world - have been hammered by overproduction by China . By offering countries a way to escape the tariffs, Trump might have eased the risk of a destructive trade war.


Most liked

Jose Mourinho goes in on Frank de Boer after Marcus Rashford comments
In the first half, the game gave us the opportunity to be direct, fast and score goals, more than we did. I'm really happy with Marcus'.

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.

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 .

Weather Authority: Cooler and breezy on Tuesday
Moisture returns on the heels of a breezy southerly wind by Thursday , resulting in more clouds and a few scattered showers. A quick step back on Friday with temps in the upper 30s to low 40s at best but it will be a nice and bright day .

Taliban likely to miss Afghan peace meeting, says host Uzbekistan
President Donald Trump in August announced an increase in the number of U.S. troops in the country to push back the resurgent Taliban.

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.

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.

SC women's team a No. 2 seed in NCAAs
General admission seating is available for $15 (adult) for the first round (both games) and $12 (adult) for the second round. Booklets for the entire weekend are available for $23 and include a general admission ticket for each round.

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 .

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.

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 .

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.

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.

Pakistan gets Windies boost with T20 series in Karachi
Lahore Qalandars kept their cool to register their second straight win and deny Karachi Kings in a thrilling Super Over triumph in the the Pakistan Super League on Sunday.