OECD in gloomy report cuts its global outlook and warns worse may be ahead
The outlook is now clouded from the report that has been labeled as bleak by the OECD. That reduces the global perspective and in fact warns that the worst could be approximated. The report states that the world economy is suffering more than expected from the commercial tensions and political uncertainty that are clouding the outlook, particularly in Europe.
It is necessary to say that these would be the first forecasts of the organization in almost four months, in part it is catching up with the developments since then. In that period, little has gone well for the world’s largest economies: weakness in the euro area and China are proving to be more persistent, trade growth has declined considerably and uncertainty about Brexit has continued.
Degradation of almost all economic groups
In fact, the Paris-based Organization for Economic Cooperation and Development, degrading almost all groups in the 20-nation economy, assured “Global expansion continues to lose momentum”, while also establishing “Growth results could be even weaker if downside risks materialize or interact. “
Now, it is necessary to talk about how vulnerable Canadians could be to such debt. And in this way, the true state of Canada’s economy is observed and there is no doubt that there is nothing better than the world to make such a comparison. That being the case, one could say that Canada’s economy practically stops and, surprisingly, nobody saw it coming.
On the other hand, the OECD figures are weaker than those of the IMF for many economies, particularly the euro area and the United Kingdom, as the organization warns that things could get worse. Despite this, there have recently been some small signs that the world economy is stabilizing, while the United States and China are moving forward to end their long trade dispute. JPMorgan’s composite global purchasing managers index rose for the first time in three months in February, while some euro area indicators were also better than expected.
Even so, central banks, including the Federal Reserve, have already taken action and have thus responded to changing circumstances, and the European Central Bank can follow soon. Meanwhile, China forced to reduce its goal of economic growth this week, has launched tax cuts to stimulate its economy.
Source: Bloomberg News, William Horobin | National Post