New warning on global economic slowdown

A leading international economic organisation has warned that risks to the global outlook have increased.

The Organisation for Economic Cooperation and Development – the OECD – says in a new report that prospects have steadily deteriorated.

It forecasts continued growth of around 3% but warns that the risks have increased.

The report says a lack of direction on climate policy is holding back business investment.

Although the OECD is not forecasting a recession, it is a decidedly downbeat report.

There are calls for action from governments to address challenges, some of which have both long term and more immediate consequences.

Climate change is perhaps the most striking example.

The OECD says extreme weather events could lead to disruption of economic activity and could inflict long lasting damage on capital and land. They could also lead to what the report calls disorderly migration flows.

Insufficient policy action could increase the frequency of such events.

There is clearly a long term challenge for governments in addressing these issues, but the OECD says that there is already an impact on business investment.

In many countries it is investment and trade that has been at the centre of weakening economic performance.

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