The Organization for Economic Cooperation and Development (OECD) expects the world economy to experience the weakest growth since the financial crisis a decade ago. The global gross domestic product will increase this year only by 2.9 and 2020 by 3.0 percent, it says in the outlook. In May, the OECD had assumed 3.2 and 3.4 percent.
The reason for the weaker growth are trade conflicts and political tensions. The tariffs imposed on each other by the US and China alone should reduce global growth by 0.3 to 0.4 points in the coming year, it said. Governments should counteract the downturn with higher investment, advises the OECD.
The OECD is particularly skeptical about Germany. Here, the forecast for the current year was reduced by 0.2 points to 0.5 percent. Expectations for 2020 have been lowered even more: only an increase in gross domestic product (GDP) of 0.6 percent is expected. By May, 1.2 percent had been assumed. As an export-oriented economy, Germany is particularly hard hit by trade conflicts.
According to the OECD in 2019, the world's largest economy, the US, is only growing at 2.4 (previously 2.8) and 2.0 (2.3) percent in the presidential election year2020. US President Donald Trump had spent a target of at least three percent, which he would therefore clearly omit.