OECD projects 2.9% global growth for 2019, 2020

The Organization for Economic Co-operation and Development (OECD) expected the world economy to expand at slowest pace of a decade in 2019 and 2020.

World economic growth is estimated to hit 2.9% for both this year and next year, and 3 for 2021, the OECD November Economic Outlook report revealed Thursday.

The projection for 2020 was downgraded from 3% in its previous report.

"Trade conflict, weak business investment and persistent political uncertainty are weighing on the world economy and raising the risk of long-term stagnation," it said.

Meanwhile, the OECD upgraded Turkey's economic growth projection for 2019 to 0.3%, up from minus 0.3% from previous one.

Noting that the growth continued to recover over recent months, the report said substantial government stimulus is lifting domestic demand more vigorously than previously anticipated and currency depreciation is supporting exports.

The organization also revised up its forecast for the growth in 2020 to 3%, from 1.6%.

Turkey's economy is foreseen to grow 3.2% in 2021.

"Yet, weak external trade demand, geopolitical uncertainties and impaired private balance sheets are projected to keep GDP growth at around 3%, well below potential growth which itself has weakened and which may decline further due to increased policy-related distortions in the economy," it said.

It also advised Turkey to make the macroeconomic policy framework simplified and more transparent to rebuild domestic and international confidence.