Trade tensions and higher interest rates are slowing the global economy, though for now there are no signs of a sharp downturn, the OECD said lowering its outlook for next year.
The Organisation for Economic Cooperation and Development forecast that global growth would slow from 3.7 percent this year to 3.5 percent in 2019 and 2020. It had previously projected 3.7 percent for 2019.
The OECD left its forecasts for the United States in 2018 and 2019 unchanged, projecting growth in the world’s biggest economy would slow from nearly 3.0 this year to slightly more than 2.0 percent in 2020 as the impact of tax cuts waned and higher tariffs added to business costs.
Rising interest rates could also spur financial markets to reconsider and thus reprice the risks to which investors are exposed, triggering a return to volatility, the OECD said.