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OECD: global economy faces escalating risks

(ANSA) - BELGRADE, 21 NOV - The global economic growth "remains strong" but "faces escalating risks including rising trade tensions and tightening financial conditions," the Organisation for Economic Co-operation and Development (OECD) said in its latest Economic Outlook released today. Global GDP is expected to expand by 3.5% in 2019, compared with the 3.7% forecast in last May's Outlook, and by 3.5% in 2020, with Growth forecasts for 2020 revised down by OECD for most of the world's major economies, the Organisation said. After expanding by an estimated 0.6% in 2019, the GDP in Germany, Europe's largest economy, is projected to grow only by 0.4% in 2020 and 0.9% in 2021, with "weaknesses in manufacturing" spilling over to the rest of the economy and "declines in export orders and industrial production." Economic growth in Austria is projected to edge down over the 2020-21 period (1.5% in 2019, 1.3% in 2020 and 2021), with employment continuing to increase and a "tight labour market will support income growth." In Bulgaria, "economic growth has been robust, but is projected to weaken somewhat in 2020 and 2021," OECD said, forecasting a 3.4% growth in 2019 and 2.8% in 2020 and 2021. In the Czech Republic, economic growth is projected to ease to around 2% in 2020-21, while in neighboring Slovakia "is projected to slow to around 2.2-2.6 per cent in 2020-21, as weaker external demand will weigh on export growth." GDP in Greece will expand by about 2% in 2020-21, OECD said. Also in Hungary the previous "strong recovery is projected to slow in line with external demand to slightly above 3% in the next two years." In Poland, one of the most important economies in Central- and Eastern Europe, the economic growth "will remain robust, although decreasing to 3.8% in 2020 and 3% in 2021," OECD noted. In Romania, after a strong expansion in recent years, the GDP is forecasted to slow to 3.2% in 2020 and to increase again in 2021 (3.7%). The economy in Slovenia is projected to remain at around 3% until 2021 with "private consumption will continue to be the main driver of growth, sustained by higher wages and solid employment gains." (ANSA).