Economic Buzz: OECD Emphasizes Significant Risks Posed By Trade Tensions

In the latest Economic Outlook, the Organization for Economic Cooperation & Development said the global economy is set to grow 3.8 percent this year and 3.9 percent in 2019. In March, the agency had projected 3.9 percent growth for both 2018 and 2019. The Paris-based think tank said the global economy is undergoing stronger growth underpinned by a rebound in trade, higher investment and buoyant job creation. However, the OECD emphasized significant risks posed by trade tensions, financial market vulnerabilities and rising oil prices to global economy. According to the latest forecast, growth in the OECD area is set to remain around 2.5 percent per annum, helped by fiscal easing in many economies. Largely due to a substantial fiscal boost, the United States will expand 2.9 percent in 2018 and 2.8 percent next year, the agency said.