THE Organisation for Economic Cooperation and Development (OECD) has reduced its global growth forecasts by 0.1 to 2.9 per cent this year while expecting 3.2 per cent growth next year.
In the first quarter the volume of world trade dropped and will fall short of overall output growth in the full year, the OECD, traditionally a gathering of affluent countries, reported Bloomberg.
"Trade growth rates have deteriorated dramatically since the financial crisis," said OECD economist Catherine Mann. "Some might say this is a good thing. No, this is damaging and it shows up as a decline in productivity growth."
Since the 2008 financial crisis, policy makers have struggled to revive both trade and growth. The OECD warned that the expansions in developed economies are weakening as major emerging market commodity producers show only a "gradual improvement."
The US economy is forecast to grow 1.4 per cent this year, down from the 1.8 per cent predicted in June, according to the report. The euro-area forecast was cut by 0.1 point to 1.5 per cent, and the outlook for Japan was lowered 0.1 point to 0.6 per cent.
The OECD also reduced its prediction for the UK's 2017 economic output by one percentage point to one per cent following the Brexit vote.
Source : HKSG.