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Rising trade conflicts are weakening the global economy

EUdebates Team by EUdebates Team
19/09/2019
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OECD Chief Economist Laurence Boone says global growth is slowing as escalating trade conflicts are hitting business confidence and investment. Governments need to make use of low interest rates to renew investment in infrastructure.

Global growth continues to weaken and a no-deal BREXIT will be a large negative shock to the UK economy!

The Outlook calls on central banks to remain accommodative in the advanced economies, but stresses that the effectiveness of monetary policy could be enhanced in many advanced economies if accompanied by stronger fiscal and structural policy support. It says fiscal policy should play a larger role in Global Growth and supporting the economy, by taking advantage of exceptionally low long-term interest rates for wider public investment to support near-term demand and future prosperity. Greater structural reform ambition is required in all economies to help offset the impact of the negative supply shocks from rising restrictions on trade and cross-border investment and enhance medium-term living standards and opportunities.

Invest to avoid a low-growth future!
Laurence Boone

ECD Chief Economist Laurence Boone OECD
ECD Chief Economist Laurence Boone

OECD for Global Growth

The Organisation for Economic Co-operation and Development (OECD) provides a forum in which governments can work together to share experiences and seek solutions to common problems. OECD works with governments to understand what drives economic, social and environmental change. It measures productivity and global flows of trade and investment. The OECD analyses and compares data to predict future trends of global growth. It also sets international standards on all sorts of things, from the safety of chemicals and nuclear power plants to the quality of cucumbers.

The origins of the Organisation for Economic Co-operation and Development date back to 1960, when 18 European countries plus the United States and Canada joined forces to create an organisation dedicated to global development. Today, the 34 member countries span the globe, from North and South America to Europe and the Asia-Pacific region. They include many of the world’s most advanced countries but also emerging countries like Mexico, Chile and Turkey.

Monetary policy alone cannot do the trick
Valdis Dombrovskis

Is Eurozone ready if economy gets worse?

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