Washington D.C. - The OECD has released a report forecasting a significant slowdown in U.S. economic growth for the current year. The report projects a growth rate of 1.6%, a considerable decrease from the 2.8% growth experienced last year.
The OECD cites ongoing trade disputes, particularly those initiated by the Trump administration, as a key factor contributing to this slowdown. These trade wars are disrupting established global trade patterns, leading to increased costs for businesses importing and exporting goods. This, in turn, impacts consumers through higher prices.
Furthermore, the uncertainty surrounding trade policy is creating a climate of hesitation among businesses. Many companies are delaying investment decisions due to the unpredictable nature of the trade environment. This reluctance to invest further dampens economic activity.
The OECD report highlights the interconnectedness of the global economy and the potential negative consequences of protectionist trade policies. The organization urges policymakers to seek collaborative solutions to trade disputes to foster a more stable and predictable economic environment.
US Economic Growth Slowing Amid Trade Tensions, OECD Reports
The U.S. economy is projected to grow at a slower pace of 1.6% this year, down from 2.8% the previous year. The Organization for Economic Cooperation and Development (OECD) attributes this slowdown partly to ongoing trade disputes. These trade tensions are disrupting global commerce, increasing costs for businesses, and creating uncertainty for consumers. The report suggests that these factors are hindering economic expansion.
Source: Read the original article at ABC