The OECD has issued a revised forecast for global economic growth, highlighting challenges faced by major economies due to ongoing trade tensions, particularly involving the United States. The organization has downgraded growth expectations for countries like the US, Canada, Mexico, and China, attributing this to increased trade barriers, tighter financial conditions, and political uncertainty.
Switzerland, while facing a similar downward revision, benefits from stable domestic demand driven by real wage increases and rising employment. However, its export-driven sectors feel the pinch from global trade struggles. The OECD advises reducing administrative hurdles to boost investments, especially in renewable energy.
Germany, too, is expected to experience minimal growth, with projections setting it among the lowest in Europe. Factors such as weak purchasing power, skilled labor shortages, and vulnerability to trade conflicts contribute to this outlook. Despite a slight expected economic upturn in 2024, sustained growth remains uncertain.
The UK faces a slowdown, with projected growth of just 1% next year, affected by tariff impacts and economic constraints. The country's spending plans are pressured by rising costs in critical sectors, further complicating fiscal management.
The OECD emphasizes the need for governmental collaboration to address global trade issues constructively. Removing trade barriers could foster growth and alleviate inflationary pressures. Such measures are crucial for navigating the uncertain economic landscape, ensuring markets remain open and resilient.
