US, China Economic Growth to Slowdown in Coming Years if Trade War Continues

The US-China trade war could cost both nations’ economies lower growth in the coming years, according the OECD. If the tariff wars continue, both China and the US could see their average growth reduce by 0.2-0.3% on average in 2021 and 2022.

The OECD expects the global economy to grow at 3.2% in 2019, mostly driven by a steep reduction in trade flows which have come down to 2.1%. However, if the US and China call off their tariff war, the global economic growth could go up to 3.4% in 2020.

OECD expects China’s growth to slide down to 6.0% in the coming year, the slowest growth rate for the country in three decades. Markets are adopting a wait and watch approach to observe how China will counter any growth slowdown via stimulus efforts.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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