so Far, it was assumed to be 1.6 percent, while the German government expected 1.0 percent. In the coming year, it should be enough according to the OECD, to 1.1 percent, after previously 1.4 percent had been forecast. As the main reason for the weakness of the slower-growing world economy, the European Export champion Germany is particularly dependent.
“The global Expansion is losing in the face of increased political uncertainty, and continuing trade tensions and continued declines in the confidence of companies and consumers will continue to gather momentum,” said the OECD. “A stronger slowdown in China would dampen global growth and could weaken growth in Europe.”
Brexit is a cause of uncertainty
For Italy, the organization predicts a recession year. The gross domestic product to shrink in 2019, by 0.2 percent, in 2020, a slight increase of 0.5 percent. For France to be told in both years, 1.3 percent advance.
“In Europe, there are still considerable political uncertainty, including the Brexit”, it said. “A disorderly exit would economies the costs for the European people.” Significantly, the forecast for the UK, the want to escape this month from the EU. For the current year, the forecast was lowered from 1.4 to 0.8 per cent by 2020 from 1.1 to 0.9 percent.
trade dispute burdened the USA and China,
Much better it is likely to run in the world’s largest national economy, the USA. Here, the OECD expects a growth of 2.6 per cent, to be followed by 2020, an increase of 2.2 percent. “A solid labour market outcomes and favorable financial conditions continue to support the income and expenditure of households,” said the OECD. “But, higher tariffs have begun, the company costs and to increase prices.” The growth of investments and exports have slowed down already.
For China, the experts are forecasting a gradual cooling. 2020, the growth will be six percent. “The trade tensions loads increasingly on exports and industrial production,” it was said with a view to the trade conflict with the United States. The world’s two largest economies have coated each other with punitive tariffs. The government in Beijing is trying to keep up with a large-scale stimulus program, the economy gained momentum.