“Clearly the biggest threat is through the escalation of trade restriction measures, and this is happening as we speak. The world economy is expected to pick up slowly next year, but only if Washington and China drop their latest tariff moves. SEE ALSO :Trump orders tariff hike on remaining Chinese importsThat kind of tariff escalation, plus the associated rise in uncertainty about a broadening of the trade war, could lop about 0.7 percent off the world economy by 2021-2022, the OECD said. Other G20 nations will be urging them to step back from the fight, chief among them Germany and Japan, two export power-houses which have much to lose from a long trade war. But over the longer term, a protracted trade war is likely to drag down the consumer economy too.

Source: Standard Digital May 25, 2019 08:37 UTC