OECD: Global Economy at Risk from Protectionist Measures

Global economic expansion may have reached its peak as trade tensions pressure markets, says a new report by the Organization for Economic Cooperation and Development. OECD is projecting global GDP growth will settle at 3.7 percent in 2018 in its Interim Economic Outlook. 

“Amidst rising trade tensions and heightened trade policy uncertainty, global trade growth has slowed. Global trade volume growth eased to around 3 percent in the first half of 2018, from 5 percent in 2017. Recently introduced restrictive trade policy measures have already resulted in marked changes in trade flows and prices in targeted sectors. Policy announcements have also adversely affected business sentiment and investment plans, reflecting uncertainty about the possible disruption to supply chains and the risk that restrictions may intensify. A further rise in trade tensions would have significant adverse effects on global investment, jobs and living standards.”