The OECD has released its latest Interim Economic Outlook, warning that a low-growth trap has taken root, as poor growth expectations further depress trade, investment, productivity and wages. It projects that the global economy will grow by 2.9 percent this year and 3.2 percent in 2017, which is well below long-run averages of around 3¾ percent.
"The marked slowdown in world trade underlines concerns about the robustness of the economy and the difficulties in exiting the low-growth trap," said OECD Chief Economist Catherine L. Mann. "While weak demand is surely playing a role in the trade slowdown, a lack of political support for trade policies whose benefits could be widely shared is of deep concern."
The Interim Economic Outlook renews calls for a stronger collective response using fiscal, structural and trade policies to boost growth.
Webcast of the press conference with OECD Chief Economist Catherine L. Mann
More on the Interim Economic Outlook
Cardiac Arrest or Dizzy Spell: Why is World Trade So Weak and What Can Policy Do About It - OECD Economic Policy Paper released with the Interim Outlook
