OECD cautiously optimistic on world growth.
OECD cautiously optimistic on world growth. The overall forecast for 2019 was cut back to 3.5% from 3.7% with trade tensions and rising rates taking their toll, but it seems the organisation is cautiously optimistic that a hard landing can be avoided. Instead the global economy is heading for a fragile soft landing as the expansion has reached its limit for now. U.S. growth is seen at 2.9% this year, falling to 2.7% and 2.1% in 2019 and 2020. For the Eurozone the OECD sees growth of 1.9% this year, followed by 1.8% and 1.6% over the next two years and with Italy continuing to underperform. The forecasts will further undermine Rome's budget plans, which foresee a gradual reduction in deficit and debt levels based on the assumption that their reform package will lift growth lastingly. For the Brexit hit U.K. economy the OECD sees growth of 1.4% and 1.1% in 2019 and 2020 after an estimated 1.3% this year and with the risk of a hard Brexit hanging over the outlook.