Potential trade war threatens global economic growth, OECD warns

Cornelia Mascio
Marzo 13, 2018

"Backed by the global trade recovery, minimum wage hike, and household income expansion, South Korea's economic growth will remain at 3 percent in 2018-2019", the OECD report said, retaining its former forecast for Asia's fourth-largest economy.

The OECD blamed the UK's position on high inflation dampening consumer demand and continued uncertainty about Brexit.

US tax cuts and government spending increases will likely deliver a boost to the global economy this year and next, but that could be offset by an escalation of tensions over trade, the Organization for Economic Cooperation and Development said Tuesday.

The body's Interim Economic Outlook - released as Chancellor Philip Hammond was preparing to paint a hopeful picture of Britain's prospects in his spring statement - nudges predicted United Kingdom growth for 2018 up by a tenth of a percentage point to 1.3%. The figure for next year was also increased from 3.6 percent to 3.9 percent.

"Countries should rely on collective solutions like the Global Forum on Steel Excess Capacity to address specific issues".

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.

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