Trade tensions cloud best global growth outlook in 7 years - OECD

Trade tensions cloud best global growth outlook in 7 years - OECD

The Paris-based economic think-tank says trade protectionism remains a key risk that would negatively affect confidence, investment and jobs.

The OECD says the revised outlook compares with growth of 3.0 per cent past year in Canada.

World growth was 3.7 percent in 2017.

"Safeguarding the rules-based worldwide trading system will help to support growth and jobs", it said.

"I think it is very important to avoid escalation and to initiate a strengthening in the global dialogue to solve not only the problem for steel but to avoid bigger repercussions in terms of trade".

Last week, President Trump signed controversial orders imposing heavy tariffs on steel and aluminium.

The tensions have also heightened fears for the global multilateral system that lays a level playing field for governments around the world.

The OECD believes that monetary policy in advanced economies gradually will tighten at different speeds.

He said: "Investment is coming back, and so this is very good news for good new for jobs and growth across the economies".

More news: U.S. picking up Taliban interest in Afghan peace talks

The OECD stressed that the world economy would continue to strengthen in 2018 and 2019.

The eurozone economy will likely see a robust and broad-based expansion, with growth in gross domestic product estimated at 2.3 percent this year and 2.1 percent next year.

For the first time, OECD-wide unemployment fell in 2017 below its pre-crisis rate, the report said.

The Organization for Economic Cooperation and Development on Tuesday raised its forecasts for the global economy for 2018 and 2019, factoring in the impact of tax cuts and spending in the United States.

But the OECD said this transition had to be carefully implemented to avoid financial market disruption and inflicting pain on still fragile developing economies.

The United Kingdom will be the country of the G20 with the lowest growth both this year (1.3%) and the next (1.1%) and the reason, according to Pereira, is "mostly due to the uncertainty of the Brexit".

The OECD is expecting British growth of 1.3 percent this year after 1.7 in 2017, dropping further to 1.1 percent in 2019.

Britain, however, was seen missing out on the global upturn, lagging all other G20 countries with growth of only 1.3 per cent this year, although up from a November forecast of 1.2 per cent due to the broader global improvement.

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