A fully automated container terminal is pictured at the Port of Qingdao in Qingdao, East China's Shandong province, June 8, 2018. (Photo: IC)
China's economy is projected to grow 6.2 percent year-on-year in 2019, according to the Organisation for Economic Co-operation and Development on Tuesday, which also forecast a six percent increase for the following year.
The Paris-based body released a report on the global economic outlook this year, saying world GDP growth is expected to drop from 3.5 percent in 2018 to 3.2 percent this year, before edging up to 3.4 percent in 2020.
The rate of growth is well below the rates of expansion seen over the past three decades, the report said.
The OECD forecasts GDP growth in the United States to slow by 0.1 percentage point to 2.8 per cent in 2019 and further slide to 2.3 per cent in 2020.
The tariffs imposed by the United States and China last year have already started to slow growth and add to inflation, said the OECD.
By 2021 output in the United States and China is predicted to be around 0.2-0.3 percent lower than otherwise, while world trade is set to be reduced by around 0.4 percent.
The latest round of tariff increases announced in May could potentially reduce GDP further in the US and China by an additional 0.2-0.3 percent on average by 2021 and 2022, according to the report.
The OECD urged governments to use all policy tools at their disposal.
Based on a common diagnosis of trade issues and taking into account the interdependence of economies, it is imperative to reignite multilateral trade discussions, according to the report.