Economists predict the lowest global growth in a decade

• Click to share on Facebook (Opens in a new window)
• Click to share on Twitter (Opens in a new window)
• Click here to share on LinkedIn (Opens in a new window)
• Click to email a friend (Opens in a new window)

New York (CNN Business) - The world economy is slowing and could move towards a recession.

The Organization for Economic Cooperation and Development (OECD), an intergovernmental economic group, has just reduced its global growth forecast to the lowest in a decade.

The OECD projects that the world economy will grow by only 2.9% in 2019, which would be the lowest forecast since 2009. In 2020, growth is forecast to increase to 3%. Only 18 months ago, the organization still expected a 4% growth.

MIRA : OECD: the moment of new alliance

A global growth of 3% or less constitutes a recession, according to previous definitions used by the International Monetary Fund.

G20 nations are expected to grow 3.1% this year and 3.2% next year, according to updated perspectives. US growth It was reduced to 2.4% in 2019 and 2% in the following year.

The trade war between the United States and China and its impact on world manufacturing and the growth of trade are to blame for this bleak forecast, according to the OECD. Brexit also remains a big question mark, and the slowdown in China's giant economy presents its own set of challenges for the world.

Continuous commercial tensions are also affecting commercial investments and confidence, which only increases uncertainty. The slow business investment has created an investment gap that will have a long-term structural impact on growth, according to OECD chief economist Laurence Boone. This could mean slower growth that becomes the new normal.

MIRA : Is Latin America prepared for a global economic recession?

"An urgent response is required, otherwise we run the risk of being trapped in a long period of growth, whose worst part will be felt mainly by the most vulnerable," Boone said in a blog.