Beautiful Virgin Islands

Tuesday, Sep 09, 2025

OECD: Global economy increasingly fragile

OECD: Global economy increasingly fragile

The Organisation for Economic Cooperation and Development is the latest financial body to issue a warning that the global economy is weakening.

In its latest Interim Economic Outlook, released last month, the Paris-based organisation called the global economy “increasingly fragile and uncertain” and announced that trade tensions and political upheaval may lead to the worst year since the 2009 global financial crisis.

“The global economy is facing increasingly serious headwinds, and slow growth is becoming worryingly entrenched,” OECD chief economist Laurence Boone said in explaining why the organisation was cutting the predictions it made in its last outlook four months ago.

“The uncertainty provoked by the continuing trade tensions has been long-lasting, reducing activity worldwide and jeopardising our economic future.”

The OECD predicted the global economy would grow by 2.9 percent in 2019 and three percent in 2020, which would mean the weakest annual growth rates since 2009. The report, which included all G-20 economies, placed the blame on escalating trade conflicts, which are harming investor confidence. Policy uncertainty, such as the prospect of a no-deal Brexit with the potential to push the United Kingdom into a recession and weaken growth throughout Europe, has aggravated the perceived risks in financial markets and exacerbated the poor growth, according to the organisation.

Manufacturing was the industry suffering the most in the OECD’s outlook, with a trade war between the United States and China negatively impacting employment growth and household spending. As the Chinese economy also slows, tension between high debt and deteriorating credit are combining to hurt future growth. Countries subject to this year’s decline in global trade
and investment are most affected, according to the OECD. Locally, although the VI economy did not factor into the report, the dismal Q2 incorporation numbers could indicate that the territory is beginning to feel the impact.


Call for action


In the past two weeks, the organisation has joined a chorus that also includes the US Federal Reserve, the People’s Bank of China, the European Central Bank and others in pushing governments for stronger fiscal and structural policy support, saying there is not much more they can do to head off crisis as economic prospects weaken in both advanced and emerging economies.

Fiscal policy must play a large role in preventing the downturn, according to the organisation, which stressed the importance of taking advantage of extremely low long-term interest rates for broader public investment and increased spending.

“Our fear is that we are entering an era where growth is stuck at a very low level,” Ms. Boone said. “Governments should absolutely take advantage of low rates to invest in the future now so that this sluggish growth doesn’t become the new normal.”

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
Generations Born After 1939 Unlikely to Reach Age One Hundred, New Study Finds
End to a four-year manhunt in New Zealand: the father who abducted his children to the forests was killed, the three siblings were found
Germany Suspends Debt Rules, Funnels €500 Billion Toward Military and Proxy War Strategy
EU Prepares for War
BMW Eyes Growth in China with New All‑Electric Neue Klasse Lineup
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
US Justice Department Launches Criminal Mortgage-Fraud Probe into Federal Reserve Governor Lisa Cook
Escalating Drug Trafficking and Violence in Latin America: A Growing Crisis
US and Taiwanese Defence Officials Held Secret Talks in Alaska
Report: Secret SEAL Team 6 Mission in North Korea Ordered by Trump in 2019 Ended in Failure
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Florida Murder Case: The Adelson Family, the Killing of Dan Markel, and the Trial of Donna Adelson
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Brand-New $1 Million Yacht Sinks Just Fifteen Minutes After Maiden Launch in Turkey
Here’s What the FBI Seized in John Bolton Raid — and the Legal Risks He Faces
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Queen Camilla’s Teenage Courage: Fended Off Attempted Assault on London Train, New Biography Reveals
Scottish Brothers Set Record in Historic Pacific Row
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
×