Beautiful Virgin Islands

Thursday, Jul 10, 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
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
×