Wars and crises are putting pressure on the global economy. The new outlook from the OECD, the organization of industrialized countries, is cautious for Germany.
The OECD, the organization of industrialized countries, has again revised its forecast for economic growth in Germany downwards. For the current year, the OECD economic experts are only expecting an increase of 0.1 percent, according to the economic outlook published in Paris on Wednesday.
The Organisation for Economic Co-operation and Development (OECD) had already lowered its growth forecast for Germany in an interim report in May. Instead of the 0.3 percent it had assumed in February, it was expecting growth of 0.2 percent. For the coming year, the OECD is expecting more momentum in the German economy and an economic increase of 1.0 percent.
The OECD expects global growth of 3.2 percent this year and next year. In the euro area, it expects growth of 0.7 percent and 1.3 percent respectively.
According to the OECD forecast, falling inflation, rising incomes and less restrictive monetary policy in many countries will have a stabilizing effect on the economy. However, significant risks are still seen. For example, ongoing geopolitical and trade tensions could increasingly affect investment and increase import prices. Growth could also weaken more than expected due to the slowdown in the labor markets. On the other hand, rising wages could boost spending and further falling oil prices could accelerate the decline in inflation.
The Paris-based Organisation for Economic Co-operation and Development (OECD) brings together countries that are committed to democracy and a market economy. In addition to large economies such as Germany, the USA and Japan, emerging countries such as Mexico and Chile are now members.
Source: Stern
