The Organization for Economic Cooperation and Development is increasingly pessimistic about the global economy and is warning that the “low-growth trap” will continue if governments don’t change tack on spending and trade.
Among the risks to the global outlook identified by the Paris-based economic agency was a potential British exit from the European Union.
In its Global Economic Outlook, the OECD reiterated its view that a so-called vote for Brexit in the country’s referendum this month “would depress growth in Europe and elsewhere substantially.”
The refugee surge to Europe and a lack of unified response also threatens global financial stability, it says.
Overall, the OECD is forecasting global growth of 3 per cent this year and 3.3 per cent next. Both are down 0.3 percentage point from its November outlook.