Sept. 19 (UPI) -- The global economy is expected to grow by 2.9 percent in 2019 and 3 percent in 2020, the weakest growth in a decade, the Organization for Economic Cooperation and Development reported Thursday.
The OEDC blamed the trade war between the United States and China for slowing the growth of the world's economy, which grew 3.6 percent in 2018. The United States is projected to grow 2.4 percent in 2019 and 2 percent in 2020. Both projections are lower than the last estimate in May.
"Escalating trade conflicts are taking an increasing toll on confidence and investment, adding to policy uncertainty, aggravating risks in financial markets and endangering already weak growth prospects worldwide," the OECD said in a statement.
The slowdown has heightened concerns about a recession but it hasn't dampened optimism among home builders as housing starts are the highest they've been since 2007.
Britain's plan to leave the European Union is also shaking up the global economy.
"Substantial uncertainty persists about the timing and nature of the withdrawal of the United Kingdom from the European Union, particularly as concerns a possible no-deal exit which could push the UK into recession in 2020 and lead to sectoral disruptions in Europe," the OECD said.
The OECD calls on central banks to play a larger role in supporting the economy.
Overall, the global economy is facing strong headwinds and slow growth is becoming entrenched, OECD Chief Economist Laurence Boone said.
"The uncertainty provoked by the continuing trade tensions has been long-lasting, reducing activity worldwide and jeopardizing our economic future," Boone said. "Governments need to seize the opportunity afforded by today's low interest rates to renew investment in infrastructure and promote the economy of the future."