OECD lowers global economic growth forecast for 2019

By Tuba Sahin

ANKARA (AA) - The Organization for Economic Cooperation and Development (OECD) on Wednesday revised down its global economic growth forecast for 2019 amid rising trade and financial risks.

The global economy is projected to grow 3.5 percent both next year and in 2020, according to the organization's latest economic outlook report.

The growth forecast for 2019 was down 0.2 percentage points from its previous outlook in May while it was stable at 3.7 percent for this year.

"The shakier outlook in 2019 reflects deteriorating prospects, principally in emerging markets such as Turkey, Argentina and Brazil, while the further slowdown in 2020 is more a reflection of developments in advanced economies as slower trade and lower fiscal and monetary support take their toll," the report read.

Stating that the trade tensions cut between 0.1 and 0.2 percentage points from global GDP this year, the report warned that if the U.S. hikes tariffs on all Chinese goods to 25 percent, world economic growth could fall to around 3 percent in 2020.

"Growth rates would drop by an estimated 0.8 percent in the U.S. and by 0.6 percent in China," it said.

The OECD forecasted that Turkey's economy would grow 3.3 percent this year and contract by 0.4 percent in 2019.

It said Turkish economy is forecasted to expand by 2.7 percent in 2020 with the back of a gradual recovery in domestic confidence and demand.