OECD projects stable global growth for 2020, but still weak

The perspective for world’s global economy is starting to improve again. The Organisation for Economic Co-operation and Development (OECD) has presented today its growth previsions for this year and the following one, in which is planning that global economy will grow a 3.2% in 2019, as well as a 3.4% in 2020. This prevision of increase indicates the stabilization of the global’s economy growth, but it is still remaining weak, according to the institution.

Regarding the Euro Zone, the growth will follow the same pattern as the global economy statistic, as stated on the report of the OECD. In fact, for 2019 the Eurozone is expected to increase a 1.2% its growth, while this prevision is risen until 1.4% for 2020, following a similar path as the global prevision. However, regarding 2018, the Euro Zone has suffered a growth stall, considering that the growth prevision for that year was on 1.8%.

This pattern is also followed on the global economy growth prevision. The expected rise for 2019 and 2020 is lower than the one prevised for 2018. That year, the global economy was planned to grow a 3.5%, while this prevision has been reduced for the following years since then. For all, the OECD agrees that the global economy growth “is stabilizing at a moderate level after the drop, but is still remaining weak”. Besides, the OECD also remarks that the global trade growth “has fallen sharply”.

On countries prevision, the GDP forecast for the US is showing a decrease on its growth for 2020. While in 2019 is expected to grow a 2.8%, the forecast shows a growth’s decrease on the US, getting to a prevision of 2.3%. In the UK GDP forecast, which is expected to grow only a 0.98% in 2020, while the OECD expected a growth of 1.40% in 2018. The revision of growth has also been downwards for G20 countries. In 2020, the G20 growth is set on 3.6%, increasing slightly regarding 2019, that was on 3.4%, but descending compared to 2018, when the growth was established on 3.8%.