Amid the trade war, OECD reduced the forecasts of global -national economic growth

The current trade war that raised it US President Donald Trump’s tariff policies Many experts are expected to have wide effects around the world, including on Economic growth And labor markets, a new report has been issued highlighting this warning.

the Organization for economic cooperation and recent expectations Its diminished forecasts are determined by global economies as well as the main areas of help to revive growth.

The group of 38 countries changed its view to reflect a worse path of global economies compared to a previously released report.

“In this difficult and unconfirmed environment, we have reduced the classification of our growth expectations,” the report says. “Weakness will feel economic prospects around the world, almost no exception. Less -income and slow -function trade will decrease.”

The Economic Cooperation and Development Organization says that economic growth is expected to decrease from 3.3 percent in 2024 to 2.9 percent this year and in 2026.

In its last report of March, this year and next year was expected to be 3.1 percent.

Among the countries that are highlighted, the United States, Canada, Mexico and China are expected to be the largest contributor to the global economic decline.

OECD sent a separate report on May 26 Canada’s economic surveyHe said that although there will be an economic decline this year, there may be no recession.

The report says that “protectionism” will press inflation – which means that the costs of goods and services will rise.

This indicates that Trump’s goal is to produce more goods and services for Americans within the United States by imposing a tariff on imports from other countries, which may have negative effects on their own and global economies.

Global economies warnings were hesitant for several months with the development of the trade war with TD Bank says that Canada will be in a stagnation this year Unless the government policy is able to alleviate the damage caused by the Trump tariff.

When inflation rises, central banks will usually confront these price pressures by increasing interest rates, which may mean increasing monthly costs for many.

The Bank of Canada did this starting in 2022 when inflation, which was measured by the consumer price index, reached the highest level in several years as a ripple effect on the Covid-19 pandemic.

The Organization for Economic Cooperation and Development indicates that it is in response to the pressure of inflation, central banks such as Canada should remain.

on Wednesday, Canada Bank will define monetary policyAnd although the interest rates are not expected this time, if the inflation rises in the near future, there is the ability to return to a period of the high borrowing costs again.

Going now

• Canadian tires are selling Haley Hansen to the United States for $ 1.3 billion

• Union says that the use of Canadian defense steel is a “turning point.”

There are also additional risks that this tariff is posed by developing countries if Governments are deep in debt.

“High debt levels and the most strict financial conditions constitute special risks for developing countries, many of which have the needs of re -financing large debts in the near future,” says the Organization for Economic Cooperation and Development.

The final proposal shown in the OECD report is to increase investments that will lead to the development of stronger business, and if governments are debtor, it may make it more difficult to finance future projects.

“Enhancing investment will have an effective role to revive our economies and improve public financial resources.”

Prime Minister Mark Carne carried a campaign during the April elections Plans to strengthen the Canadian economy in the face of the trade war And increased spending to help diversify commercial partners outside the United States.

Another way in which Carney works is to reduce the damage caused by the trade war in facilitating provinces and regions with each other, and begins to remove the remaining federal organized trade barriers.

The Prime Minister met with the regional prime minister on Monday To discuss these changes, including the energy sector, although the meeting showed that the Prime Minister believes that more work must be done.

“The slow investment has reduced growth, productivity and living levels,” says the report of the Organization for Economic Cooperation and Development, adding that “governments must work together to address uncertainty and follow up on reforms to enhance growth and jobs.”

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