Milan, March 17 (LaPresse) – The risk of further fragmentation is a major concern for the global economy, as a greater and more widespread increase in trade barriers would impact growth worldwide and drive up inflation. This is stated by the OECD in its March Interim Economic Outlook.
According to the OECD, higher-than-expected inflation would lead to tighter monetary policy and could trigger a disruptive repricing in financial markets. On the other hand, the OECD highlights that a more stable political environment would reduce uncertainty, while agreements to lower tariffs from current levels and more ambitious structural reforms could strengthen growth.