World Economic Growth Forecasts Cut Amid Trade Concerns

A top economic watchdog has cut its forecasts for global economic growth due to the impact of trade disputes, Brexit and weakening demand in Europe and China.

Mnet 206765 India Us Trade Ap

PARIS (AP) β€” A top economic watchdog has cut its forecasts for global economic growth due to the impact of trade disputes, Brexit and weakening demand in Europe and China.

The Organisation for Economic Co-operation and Development said Wednesday it expects global growth of 3.3 percent this year, down from its forecast of 3.5 percent in November.

That would be a slowdown from last year's 3.6 percent.

The OECD, which advises developed countries on economic policy, slashed its forecasts particularly deeply for Germany and Italy, which are relatively exposed to changes in global trade. Italy's economy is expected to contract this year.

The U.S. forecast was trimmed 0.1 percentage points to a still-robust 2.6 percent.

Laurence Boone, the OECD's chief economist said "the global economy is facing increasingly serious headwinds."

More in Global