OECD Report Suggests World Growth Rate Weakening

On Thursday, September 19, 2019, the OECD (Organization for Economic Cooperation and Development) issued its fall report on global economic growth prospects. The forecast is discouraging, as the China-U.S. trade dispute spills over to other regions and countries. It now expects global economic growth of just 2.9% in 2019, the lowest figure since the Great Recession in 2009. The growth figure for 2018 was 3.6%. A slight rebound is forecast for 2020 with global growth expected to reach 3.0%. Growth prospects for China are very weak, compared to the 2018 growth rate of 6.6%, the rate for 2019 is 6.1% and for 2020 just 5.7%. Problems in Germany will cut its GDP growth rate from 1.5% in 2018 to O.5% in 2019 and 0.6% in 2020.

In addition, the OECD lowered its growth forecast for the U.S. economy to 2.4% in 2019 and 2.0% in 2020. In May, these forecasts were for U.S. growth of 2.8% in 2019 and 2.3% for 2020. The U.S. growth rate in 2018 was 2.9%. The research group also listed turmoil in the Middle East and confusion over the UK exit from the EU as problems that will inhibit global trade and growth.