OECD Report: 2020 Global Growth Outlook Edging Lower, Again
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OECD Report Analysis and Market Impact
- Growth pick-up at its slowest pace in a decade.
- Investment needed to keep growth from flat-lining.
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OECD Report - Growth Remains Lowly
Global growth is expected to average just 2.9% in 2020 – down from 3.0% in the last report – near a decade low, according to the latest OECD forecasts published today. OECD chief economist Laurence Boone noted that unless investment picks-up that growth will stay ‘at this very low level’. Ms. Boone noted that the mix between monetary and fiscal policies is unbalanced and ended the report by saying,
‘The current stabilisation at low levels of economic growth, inflation and interest rates does not warrant policy complacency. The situation remains inherently fragile, and structural challenges – digitalisation, trade, climate change, persistent inequalities – are daunting. Rather, there is a unique window of opportunity to avoid a stagnation that would harm most people: restore certainty and invest for the benefit of all’.
US growth is trimmed back to 2.3% from 2.4% for 2019 and kept the same at 2.0% for 2020, while China’s growth is upgraded to 6.2% from 6.1% this year and left unchanged at 5.7% for next year.
Euro-zone growth is upgraded to 1.2% from 1.15 for 2019 while 2020 growth is unchanged at 1.1%. UK growth is seen at 1.2% this year from a prior 1.0%, while 2020 growth is upgraded to 1.0% from 0.9%.
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