In its latest report published on Monday, the Organization for Economic Cooperation and Development (OECD) reduces global growth prospects due to commercial tensions, observing stronger inflationary pressures.
Additional conclusions
The OECD cuts the US growth forecast by 2025 to 2.2% from 2.4% and by 2026 to 1.6% from 2.1%.
The OECD cuts Canada’s growth forecasts by 2025 and 2026 to 0.7% from 2%.
The OECD reduces the global growth forecast by 2025 to 3.1% from 3.3% and cuts the 2026 to 3% from 3.3%.
Higher inflation than expected could boost a more restrictive monetary policy and scare financial markets.
The OECD raises the growth forecast of China by 2025 to 4.8%from 4.7%, maintaining the 2026 forecast without changes in 4.4%.
The simulation shows that a generalized commercial war will cost US $ 1,600 and will cost public finances more than the additional income from tariffs generates.
The OECD cuts Mexico’s growth forecast by 2025 to -1.3% from 1.2%, and reduces the perspective of 2026 to -0.6% from 1.6%.
The simulation shows that a generalized commercial war could cut 0.3 percentage points of global growth and 0.7 percentage points for the US.
Market reaction
After these holders, the US dollar is experiencing a new wave of sales compared to its main currency rivals. At the time of writing, the dollar index (DXY) is losing 0.15% in the day to 103.57.
After these holders, the US dollar is experiencing a new wave of sales compared to its main currency rivals. At the time of writing, the dollar index (DXY) is losing 0.15% in the day to 103.57.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
