\n\tThe Organization for Economic Cooperation and Development \u2014 the OECD \u2014 \nsaid in a new report that prospects have steadily deteriorated, BBC \nreported.<\/p>\n\n\n\n
\n\tIt forecasts continued growth of around three percent but warns that \nthe risks have increased. The report said a lack of direction on \nclimate policy is holding back business investment.<\/p>\n\n\n\n
\n\tAlthough the OECD is not forecasting a recession, it is a decidedly downbeat report.<\/p>\n\n\n\n
\n\tThere are calls for action from governments to address challenges, some\n of which have both long term and more immediate consequences.<\/p>\n\n\n\n
\n\tClimate change is perhaps the most striking example. The OECD said \nextreme weather events could lead to disruption of economic activity and\n could inflict long lasting damage on capital and land. They could also \nlead to what the report calls disorderly migration flows.<\/p>\n\n\n\n
\n\tInsufficient policy action could increase the frequency of such events.<\/p>\n\n\n\n
\n\tThere is clearly a long term challenge for governments in addressing \nthese issues, but the OECD said that there is already an impact on \nbusiness investment.<\/p>\n\n\n\n
\n\tIn many countries it is investment and trade that has been at the \ncenter of weakening economic performance. It said governments must act \nquickly.<\/p>\n\n\n\n
\n\t“Without a clear sense of direction on carbon prices, standards and \nregulation, and without the necessary public investment, businesses will\n put off investment decisions, with dire consequences for growth and \nemployment,” the OECD said.<\/p>\n\n\n\n
\n\tThe report argues that more clarity on climate policy \u2014 and also on \ndigitalization \u2014 would trigger a marked acceleration of investment by \nbusiness.<\/p>\n\n\n\n
\n\tIt suggests the creation of national funds to make public investments in these areas.<\/p>\n\n\n\n
\n\tAmong the other challenges that the OECD mentions is the change in the \nChinese economy, it is becoming a more services-oriented economy which \nmeans the country’s demand for imported goods for its industries to \nprocess is unlikely to grow as strongly in the future.<\/p>\n\n\n\n
\n\tAlong with the shift in the shape of the Chinese economy, there has \nalso been a gradual slowdown in the rate of growth since the start of \nthe decade. For the previous thirty years, the economy had grown at a \nrate that the Chinese government accepted could no longer be sustained.<\/p>\n\n\n\n
\n\tChina is trying to ensure it is not too abrupt a slowdown. The \npossibility that it might not succeed is something the OECD identifies \nas a risk to the global economy.<\/p>\n","protected":false},"excerpt":{"rendered":"
The leading international economic organization warned that risks to the global outlook have increased. The Organization for Economic Cooperation and Development \u2014 the OECD \u2014 said in a new report that prospects have steadily deteriorated, BBC reported. It forecasts continued growth of around three percent but warns that the risks have increased. The report said […]<\/p>\n","protected":false},"author":1,"featured_media":2866,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2,8,7],"tags":[966,756],"yoast_head":"\n