May 25, 2019 - Economy

OECD: U.S.-China trade war puts global economy "in a dangerous place"

The Organization for Economic Co-operation and Development (OECD) emphasized the threat of falling trade growth from the U.S.-China trade war at the global economic outlook forum this week, urging participating governments to "reignite multilateral trade discussions."

Threat level: OECD Secretary-General José Ángel Gurría said "the world economy is in a dangerous place" at the forum, Reuters reports. “Clearly the biggest threat is through the escalation of trade restriction measures, and this is happening as we speak."

What they found:

  • OECD found that 2019's Q1 has brought the lowest levels of trade growth since 2016.
  • Trade tensions with China and high levels of debt are key risks for the U.S. — and economic actions taken against China "might continue to fuel non-financial corporate debt, already at a record high level."
  • Private sector debt is also growing fast in major economies across the globe.

Go deeper: The world can't afford a trade war right now

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