Wainwright Marks Management - Risk of Trade War Threatens Global Economic Recovery
September 14, 2018 (PRLEAP.COM) Business NewsAccording to an official forecast from the Organization for Economic Cooperation and Development, global economic growth is on track to increase 0.1 percent next year.
Wainwright Marks Management analysts say the OECD downwardly revised its initial growth forecast for this year due to a slow start to 2018. Wainwright Marks Management analysts say this weak start could be attributed to temporary factors like foul weather.
The OECD stated that monetary stimulus had been replaced by budgetary easing as the main driver of global economic recovery. Wainwright Marks Management analysts say as many as two thirds of OECD member countries are beginning to relax budget limitations.
Keeping these factors in mind, the overall OECD rate of unemployment was expected to fall to its lowest level in almost four decades by 2019. This would lay the foundation for much needed growth in worker's wages.
However Andrew Miles, Head of Corporate Equity at Wainwright Marks Management says that even with this positive outlook, the threat of a trade war remains a serious risk for global economic prospects. Any further escalation of trade tensions should be avoided at all costs.
Temporary exemptions from import tariffs imposed by the US expired recently and European Union leaders have braced themselves for the effects of future trade restrictions imposed by President Donald Trump.
Wainwright Marks Management analysts say that although the number of trade restrictions has increased over the last ten years, additional measures could hurt growth especially with increasingly strong links throughout the global economy.
With tax reductions fueling investment in the world's largest economy, the US economy was expected to expand by 2.9 percent this year and almost as much in 2019.