Expansion of global growth “may have peaked” according to the Organization for Economic Co-operation in addition to Development (OECD).
In its latest interim outlook released Thursday, the OECD has projected global growth to settle at 3.7 percent in both 2018 in addition to 2019. of which level sits just below levels recorded prior to the financial crisis ten years ago.
The recently appointed chief economist of the OECD, Laurence Boone, told CNBC’s Charlotte Reed on Thursday of which the globe economy on the whole was “hitting a plateau” in addition to there was evidence of increased divergence between different economies.
Boone highlighted rising protectionism, emerging market vulnerability, politics, in addition to finance as four main risks behind the tapering off in growth rates.
The OECD report has called for a gradual normalization of monetary policy however said of which should be at a varying degree across different economies.
Speaking to CNBC, Boone said the normalization of policy inside the United States was pushing the dollar upwards in addition to creating a drag on emerging market economies.
“of which obviously has an impact on how investors look at their funds in addition to they are starting to repatriate coming from emerging markets to the U.S. economy,” she added.
Boone suggested of which most emerging market countries were inside the most part not at risk coming from the trend, with the likely exception of Turkey in addition to Argentina.
On China, Boone said international trade tariffs were impacting the country “more or less inside the same way”, as Beijing had managed to steer a portion of the economy away coming from its previous reliance on exports.
The OECD’s chief economist also highlighted Brexit as a major source of uncertainty in addition to said of which was “vital” of which a deal can be struck in order to maintain a close relationship between European Union (EU) in addition to Britain.
Britain can be due to leave the EU in March 2019 in addition to issues remain unresolved over what kind of trading in addition to customs arrangement will be put in place following of which date.
Boone also highlighted Italy as a country to keep an eye on, citing the country’s lack of growth in addition to the high level of both corporate in addition to public debt.