Home / Knowledge / News / Textiles / World trade stagnating, says OECD
World trade stagnating, says OECD
17
Sep '15
Economic recovery is progressing in the world's advanced economies, but stagnating world trade and deteriorating conditions in financial markets are curbing growth prospects in many of the major emerging economies, according to the OECD's latest Interim Economic Outlook.

Rising employment and household consumption are driving solid growth in the US, but investment continues to disappoint. Growth in the euro area is improving, but not as fast as would be expected given the falls that have been seen in oil prices, long-term interest rates and the value of the euro. In Japan, growth is improving, but tightening labour markets have yet to feed into the wage increases that would underpin sustained consumption growth and facilitate the achievement of the Bank of Japan's inflation objective.

A key puzzle in the short-term outlook centres on China, where recorded growth has held up well, but some indicators point to a slower underlying pace of economic activity. The marked slowdown in Chinese import demand has important spillover effects on global growth, particularly in emerging economies with close trade links to China, and those that depend on commodities. India is expected to be the fastest-growing major economy over the coming two years, while the outlook is weaker for many commodity-exporting nations, with Brazil experiencing a deep recession.

The impact of a larger-than-expected slowdown in Chinese demand through direct trade and investment links would be significant, especially for those countries most heavily exposed, but would not derail the global recovery unless combined with a large and widespread correction in global financial markets.

“Global growth prospects have weakened slightly and the outlook is clouded by important uncertainties,” said OECD Chief Economist Catherine L. Mann. “Emerging economies have vulnerabilities that could be exposed by rising US interest rates and/or a sharper-than-expected slowdown in China, giving rise to financial and economic turbulence that could also exert a significant drag on advanced economies. Continued policy stimulus is warranted to support global demand, but the mix of policies will differ by country, and choices need to be consistent with financial stability and reviving long-run growth.”

The OECD projects that the US will grow by 2.4 per cent this year and by 2.6 per cent in 2016, while the UK is projected to grow at 2.4 per cent in 2015 and 2.3 per cent in 2016. Canadian growth is projected at 1.1 per cent this year and 2.1 per cent in 2016, while Japan is projected to grow by 0.6 per cent in 2015 and 1.2 per cent in 2016.

The euro area is projected to grow at a 1.6 per cent rate in 2015 and a 1.9 per cent pace in 2016. Growth prospects differ widely among the major euro area economies. Germany is forecast to grow by 1.6 per cent in 2015 and 2 per cent in 2016, France by 1 per cent in 2015 and 1.4 per cent in 2016, while Italy will see a 0.7 per cent rate in 2015 and 1.3 per cent in 2016.


Must ReadView All

Apparel/Garments | On 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Courtesy: ITMA

Textiles | On 22nd Sep 2017

ITMA 2019 to focus on smart garment technologies

ITMA 2019, the world's largest textile and garment technology...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Top executives
Textile industry, India

The event should be organised every year

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search