OECD Warns About Eventual Trade War

According to the European organization, predicted economic growth might be affected by commercial tensions and the possibility of a trade war

The Organization for Economic Cooperation and Development (OECD) today rose its predictions for economic growth in the world for this year and 2019, while it warned about the potential dangers of an eventual trade war.

On Wednesday, the Paris-based institution published its prospects and noted that the world’s Gross Domestic Product (GDP) is expected to grow 3.8 percent this year, one-tenth more than predicted in its previous report six months ago, and 3.9 percent (three-tenths more) in 2019.

However, the OECD warned that such predictions might be affected by commercial tensions and the possibility of a trade war, so it urged to keep dialogue.

The organization also predicted an improvement in economic performance by most of its 34 member countries.

In the Euro zone, the PIB is expected to increase 2.2 percent this year and 2.1 percent in 2019.

Spain will have one of the best performances, growing 2.8 percent in 2018 and 2.9 percent next year, while Germany and France are under the average with growths of 2.1 percent for the former in the two years, and 1.9 percent for the latter in the same period.

The only country for which predictions were reduced is Italy, with 1.2 and 1.0 percent in 2018 and 2019, respectively, due to the political crisis affecting that nation at present.