OECD Warns Trade Tensions Could Create Low-Growth Trap

The world’s leading economies need to ease trade tensions and act decisively to prevent a descent into a low-growth trap from which it would be difficult to escape, the OECD warned on Thursday, the Financial Times reported. Labelling the economic outlook as “increasingly fragile and uncertain”, the Paris-based international organisation forecast that Britain would fall into recession if it left the EU without a deal and eurozone growth would slow to close to zero. Evidence is accumulating that the effects of trade tensions are greater than previously thought, the OECD said, urging all countries to stop erecting tit-for-tat trade barriers and to fight the economic slowdown with a fiscal stimulus, where public finances allowed. Read more