The Organization for Economic Co-operation and Development (OECD) recently said that global growth should continue over the next two years. However, they revised the forecasts for richer countries such as Germany, France, and Italy. While sending mixed signals, many forecasters still agree that the US will experience weaker economic growth over the next twelve to eighteen months, if not, a complete recession. The OECD predicts, global GDP growth top dip from 3.7% this to 3.5% in 2019 and 2020. This slowing growth may be a natural aspect of any economic cycle; however, the trading tensions between the US and China have made matter even worse. The OECD also warns the Brexit has added to the uncertainties in Europe.
The OECD is urging policymakers to restore confidence in intentional dialogue and institutions and have made multiple calls for the completion of the European Monetary Union. Along with the focus on building better bridges between countries, they included a special focus on how workers themselves can gain economic growth. According to OECD chief economist, Laurence Boon, “shoring up the global economy also involves responding to people’s concerns about the lack of improvements in wages, living standards, and opportunities. Promoting competition to improve business dynamics can help by increasing workers’ bargaining position.”
Additional solutions include better education of workers as well as promoting their career development through the movement among different companies. For example, Silicon Valley giants colluded to keeping their workers’ wages low until a federal judge ordered them to compensate them accordingly. However, they are now seeking other means of coercing their workers into docility.
Emerging markets like Indonesia, China, and India are growing at steady rates of 5, 6, and 7 percent respectively. In order for rich countries to prevent dragging down the global average, they will have to reduce the power of corporate monopolies, lower the barriers to entry, and return economic gains to the workers and consumers.