ADVERTISEMENT

'High uncertainty' hurting global growth

The OECD worries about trade conflicts hurting the world economy

"If this goes on, we may face the risk of slowing growth," OECD chief economist Laurence Boone told reporters after the group published a report titled "High Uncertainty Weighing on Global Growth".

Growth was currently at "a very high level", she said, but current risks, in particular protectionism, could erode the ongoing expansion.

Global GDP growth "remained solid" in the first half of 2018, at around 3.75 percent, the OECD said, "but there are signs that the expansion may have now peaked".

The Paris-based body said it expected growth to settle at 3.7 percent in 2018 and 2019 -- down 0.1 and 0.2 points respectively from its May projections.

ADVERTISEMENT

Among the factors hurting growth are slowing trade expansion, which slipped from 5 percent in 2017 to around 3 percent in the first half of 2018, the report said.

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 trading partners in Europe and North America.

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 US.

Impact on living standards

ADVERTISEMENT

The OECD report warned that the trade tensions are leading to a rise in uncertainty that is hurting both advanced and emerging market economies.

"A further rise in trade tensions would have significant adverse effects on global investment, jobs and living standards," the report said.

The OECD pointed to strong job growth particularly in advanced economies, but also noted that "wage growth... remains moderate" -- leaving low-income households particularly vulnerable.

It also said that the tariffs are already having a palpable impact in some sectors.

In the US, "imports of washing machines, solar panels and steel and aluminium all began to decline in value terms in the first half of the year", the report said, adding that "US domestic prices have risen sharply in the affected sectors".

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

6 Labour Party lawmakers defect to PDP in Enugu State

6 Labour Party lawmakers defect to PDP in Enugu State

Tinubu's special assistant donates food items to 1,700 residents in FCT

Tinubu's special assistant donates food items to 1,700 residents in FCT

Anambra PASAN begins strike over Soludo's failure to grant financial autonomy

Anambra PASAN begins strike over Soludo's failure to grant financial autonomy

Governor Sanwo-Olu pays ₦4.48 billion to 1,455 retirees in accrued pensions

Governor Sanwo-Olu pays ₦4.48 billion to 1,455 retirees in accrued pensions

Court discharges ex-AGF Adoke, 6 others in Malabu oil scam case

Court discharges ex-AGF Adoke, 6 others in Malabu oil scam case

Nigerians are expected to pay for TV licences — here’s what the law says

Nigerians are expected to pay for TV licences — here’s what the law says

BEDC management denies rumours of dissolution, increases revenue

BEDC management denies rumours of dissolution, increases revenue

Federal Govt set to sue Binance ltd, officials for tax evasion on April 4

Federal Govt set to sue Binance ltd, officials for tax evasion on April 4

What Nigerian law says about treatment of people with disabilities

What Nigerian law says about treatment of people with disabilities

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT