Germany and Italy will be the most affected European countries by the economic downturn, according to the entity’s forecasts.
The economy freezes in the Euro zone. The Organization for Economic Cooperation and Development (OECD) lowered by eight tenths its growth forecasts for the Euro zone in 2019, to 1%. The organism reduced as well its previous global growth forecast, lowering it by two tenths, to 3.3%, according to its last economic report.
The economic forecasts have been affected by trade tensions, political uncertainty or China’s slowdown. In the specific case of Europe, the GDP performance was revised due to the Brexit, the decrease in exports and the problems of the automotive sector caused by the new emission standards, as well as the moderation in consumer confidence.
Forecasts for the economy have been affected by trade tensions, political uncertainty or China’s slowdown. In the specific case of Europe, the evolution of GDP has been revised due to Brexit, the decline in exports, the problems of the automotive sector caused by the new emission standards, as well as the moderation of confidence.
The OECD lowered the growth forecasts for Germany by nine tenths
The most affected by the slowdown in the European economy are Germany and Italy. The organism revised downwards the evolution of the European engine in nine tenths, and anticipated that Italy will close the year again in recession with a fall of 0.2%, after forecasting a drop of 1.1 percentage points. France, for its part, will grow by 1.3%, only three tenths less than in the previous forecast.
Regarding the United Kingdom, the entity lowered its growth forecast for the British GDP by six tenths, to 0.8%. The OECD explained that if the United Kingdom and the European Union do not reach an agreement the outlook will be “significantly weaker.”
Outside Europe, the OECD revised the growth forecast for the United States one tenth downwards, up to 2.6% in 2019. For the Chinese economy, the agency anticipates a rise of 6.2%, one tenth below the previous forecasts. The same cut has been applied to India, with has a growth forecast of 7.2%.
As for the largest Latin American economies, the entity anticipated that Mexico’s GDP will grow by 2% in 2019, after reducing the previous forecast by five tenths. In the case of Brazil, the OECD reduced the last forecast by two tenths, up to 1.9%.