2019.05.2105:28:00UTC+00OECD Downgrades 2019 Global Growth Projection

The Organization for Economic Co-operation and Development downgraded the global growth outlook for 2019 as trade disputes hurt manufacturing and investment decisions.

In its latest Economic Outlook, published Tuesday, the agency forecast 3.2 percent growth for 2019 instead of 3.3 percent estimated in March. The global outlook for 2020 was retained at 3.4 percent.

The OECD cautioned that current growth rates are insufficient to bring about major improvements in employment or living standards.

"The fragile global economy is being destabilised by trade tensions," OECD chief economist Laurence Boone, said.

"Growth is stabilising but the economy is weak and there are very serious risks on the horizon. Governments need to work harder together to ensure a return to stronger and more sustainable growth," Boone added.

The OECD forecast the U.S. economy to grow 2.8 percent in 2019 before slowing to 2.3 percent in 2020. Growth in euro area is seen at 1.2 percent this year and 1.4 percent next year.

China's growth is expected to ease to 6.2 percent in 2019 and to 6 percent next year.