Global expansion is likely to slow as tensions kickstarted by US President Donald Trump's protectionist policies hit world trade, the Organisation for Economic Cooperation and Development (OECD) said today.
"Global GDP growth remained solid in the first half of 2018, at around 3.75 percent, but there are signs that the expansion may have now peaked," the OECD said.
The report expressed particular concern about nations whose currencies have collapsed in recent months.
According to the OECD, Argentina's economy should contract 1.9 percent this year (a fall of 3.9 percentage points compared to previous forecasts), while growth in Turkey is seen coming in at home 3.2 percent.
The OECD pointed to strong job growth particularly in advanced economies, but also noted that "wage growth... remains moderate" – leaving low-income households particularly vulnerable.
It also said that the tariffs are already having a palpable impact in some sectors.
In the US, "imports of washing machines, solar panels and steel and aluminium all began to decline in value terms in the first half of the year", the report said, adding that "US domestic prices have risen sharply in the affected sectors."