OECD releases its latest global growth projections
- 2018 global growth forecast unchanged at 3.7%
- 2020 global growth forecast seen at 3.5%
- 2018 US growth forecast unchanged at 2.9%
- 2019 US growth forecast unchanged at 2.7%
- 2018 Eurozone growth forecast seen at 1.9% (previously 2.0%)
- 2019 Eurozone growth forecast seen at 1.8% (previously 1.9%)
- 2018 China growth forecast seen at 6.6% (previously 6.7%)
- 2019 China growth forecast seen at 6.3% (previously 6.4%)
A bit of a downgrade to the global growth outlook for next year and that won't help breed confidence for risk/stocks in the medium-term. OECD seems worried about the Japanese economy as forecasts there has been lowered significantly with 2019 growth projected at 1.0% from 1.2% previously.
Do note that Japan will be looking to introduce a sales tax hike next year so that will play a factor and the recent earthquakes have certainly put a dent in the economy for this year already. The last time the Japanese government introduced a sales tax hike in 2014, it sent the economy into a technical recession.
