OECD warned that trade conflict, weak business investment and persistent political uncertainty are weighing on the world economy and raising the risk of long-term stagnation. Global GDP growth for 2020 was revised down by 0.1% to 2.9%, same as this year, lowest annual rate since the financial crisis. That’s also a sharp slowdown from 3.5% back in 2018.
OECD Chief Economist Laurence Boone said: “It would be a mistake to consider these changes as temporary factors that can be addressed with monetary or fiscal policy: they are structural. Without coordination for trade and global taxation, clear policy directions for the energy transition, uncertainty will continue to loom large and damage growth prospects.”
OECD Secretary-General Angel Gurría said: “The alarm bells are ringing loud and clear. Unless governments take decisive action to help boost investment, adapt their economies to the challenges of our time and build an open, fair and rules-based trading system, we are heading for a long-term future of low growth and declining living standards.”
Look at some details:
Global GDP growth is projected at
- 2.9% in 2019 (unchanged).
- 2.9% in 2020 (down from September’s 3.0%).
- 3.0% in 2021 (new).
G20 GDP:
- 3.1% in 2019 (unchanged).
- 3.2% in 2020 (unchanged).
- 3.3% in 2021 (new).
US GDP:
- 2.3% in 2019 (down from 2.4%).
- 2.0% in 2020 (unchanged).
- 2.0% in 2021 (new).
Eurozone GDP:
- 1.2% in 2019 (up from 1.1%).
- 1.1% in 2020 (up from 1.0%).
- 1.2% in 2021 (new).
China GDP:
- 6.2% in 2019 (up from 6.1%).
- 5.7% in 2020 (unchanged).
- 5.5% in 2021 (new).
