‘High uncertainty’ hurting global growth, OECD says
Global expansion is likely to slow as tensions kickstarted by U.S. President Donald Trump’s protectionist policies hit world trade, the Organization for Economic Cooperation and Development said on Sept. 20.
In a report titled “High Uncertainty Weighing on Global Growth”, the OECD said it now expected growth to settle at 3.7 percent in 2018 and 2019 -- down 0.1 and 0.2 points respectively from its May projections.
The drop comes as Trump’s “America First” approach has brought trade conflicts with China, the world’s second largest economy, while also raising the pressure on its European trading partners.
Trump this week announced another $200 billion worth of goods for his latest volley in the stand-off with Beijing, threatening even more tariffs could be in the pipeline if China doesn’t play ball.
The new measures add to the $50 billion worth of goods already targeted, taking the total to about half of China’s exports to the U.S.
It also said that the tariffs are already having a palpable impact in some sectors.
In the U.S., “imports of washing machines, solar panels and steel and aluminum all began to decline in value terms in the first half of the year,” the report said, adding that “U.S. domestic prices have risen sharply in the affected sectors.”