An international organization predicts the collapse of global growth due to the cartoon war between China and America

Economy and stock exchange

The growth of China and the United States could fall by between 0.2 and 0.3 percent on average by 2021 and 2022 if the two countries do not adjust their tariffs in light of their trade dispute, which has reduced global growth prospects, the Organization for Economic Co-operation and Development [OECD] said Tuesday.

US President Donald Trump has raised tariffs on Chinese goods worth 200 billion dollars, from 10 to 25 percent, in the context of the deepening trade dispute between the two countries, while Beijing said it would raise tariffs on US goods worth 60 billion dollars.

The economic outlook indicates that the world economy will grow by 3.2 percent this year, as trade growth has halved this year to 2.1 percent, the OECD said in a report. "This will slow the pace of economic growth since 2016, and will be slightly lower than the previous forecast of the Organization issued in March, pointing to 3.3% growth."

According to the OECD report from Paris, the world economy will be slightly better next year at a growth rate of 3.4 percent, but this progress is contingent on the United States and China retreating from higher fees this month. Without taking into account the latest round of increases, the organization expects the United States to outperform other major economies by 2.8 percent this year, up from 2.6 percent in March. The growth of the world's largest economy is expected to slow to 2.3 percent next year, even if new fee increases are not implemented.

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