Finance - Global Slowdown Warning
The Organization for Economic Cooperation and Development (OECD) is warning in its new report of risks to the world economy spark a slowdown.
The OECD isn't forecasting a recession and even says the the global growth average will be around 3 percent. But at the same time the group says a lack of direction on climate policy is holding back business investment. Extreme weather events could lead to disruption of economic activity and disorderly migration flows. That could inflict long lasting damage on capital and land.
"Without a clear sense of direction on carbon prices, standards and regulation, and without the necessary public investment, businesses will put off investment decisions, with dire consequences for growth and employment," the OECD says.
Growth in China is also causing some concern. China's economy is slowly becoming a more services-oriented economy, and that means that demand for raw international materials goods for its industries to process is unlikely to grow as strongly in the future.