A BLEAK view of the future of the global economy has been painted by the OECD — and climate change has a central role.
A report by the Paris-based Organisation for Economic Co-operation and Development says risks have increased while prospects have dwindled — and it decries a lack of direction on climate policy.
“It is vital that countries strengthen their ability to understand, plan for and continuously manage climate risks,” the organisation says. The report also called for “urgent, strong and co-operative action based on mutual trust and understanding”.
And while the report — described as “decidedly downbeat” by the BBC — nonetheless forecasts growth, at 2.9 percent the figure is the lowest in a decade, and down one percent on September forecasts.
A clear policy on climate change is needed to restore confidence to investors, the report says; a lack of business investment has weakened overall economic performance.
The OECD suggests creating national funds to make public investments in key areas, and warns of other risks including a sudden slowdown of the Chinese economy and ongoing trade wars. Recent obstacles to trade should be rolled back or the global economy would stagnate, it said.