Trade tensions are threatening the best global economic growth outlook in seven years, the OECD said on Tuesday, adding that four US rate rises are likely this year as tax cuts stoke the world's biggest economy while Brexit will drag on Britain.
"Backed by the global trade recovery, minimum wage hike, and household income expansion, South Korea's economic growth will remain at 3 percent in 2018-2019", the OECD report said, retaining its former forecast for Asia's fourth-largest economy.
Álvaro Pereira, the OECD's acting chief economist, urged the United Kingdom to introduce more policies to boost living standards, as well as address regional disparities.
The OECD also warned of risks linked to the Group of 20 countries having total debt amounting to over 200 per cent of economic output, and stock valuations being at their highest since the early part of the century. "Certainly we believe this is a significant risk, so we hope that it doesn't materialize because it would be fairly damaging", Pereira said.
The global economy will grow close to 4 per cent this year and next, better than previously anticipated, according to the OECD, which added a warning that a trade war could roll back the gains seen in recent years.More news: LLC Cuts Holdings in Abbott Laboratories (NYSE:ABT)
The UK will be the slowest-growing economy in the G20 barring South Africa if the OECD's predictions come through, with growth well behind the 2.2 per cent average expected in the Eurozone or the 2.5 per cent annual expansion in the US. That was higher from a November forecast of 1.2 percent due to the broader global improvement.
China and Japan were forecast to achieve yearly growth rates of 6.7 percent and 1.5 percent, respectively, this year.
Britain is set to miss out on buoyant global economic growth over the next two years, according to new forecasts by the Organisation for Economic Co-Operation and Development (OECD).
In its quarterly report, the Paris-based research body said it expects growth to ease off in some of those economies this year, but not by as. The OECD, which groups 35 developed economies, called on the world's major nations to avoid a dispute that could impede trade, demand, competition and, ultimately, the health of the global economy.
The report revised 0.4% higher its predictions for U.S. growth - hitting 2.9% this year.