The new era of trade tensions and protectionism is risking denting international growth, harming living standards and stoking inflation considering the platform of anti-globalization. The OECD organization has been optimistic in expecting tax cuts and spending measures under the new administration of United States (Missios and Yildiz, 2017). This will assist in boosting growth over there and across other countries. However, the growth of international trade extremely weak already and employment opportunities will end up suffering if politicians considered the liberalization of trade.
The governments are being urged by OECD for the utilization of low borrowing investments for investing and enacting structure based reforms. Political warnings were made for not having over reliability upon central banks for driving the overall recovery under the assistance of monetary policies (Moshirian, 2011). These policies include electronic money printing programs and low rates of interest. It has been forecasted that after an average growth of 3.9 per cent till the year 2013 and international growth of 2.9 per cent in 2016, international growth will be 3.3 per cent and 3.6 per cent in the years 2017 and 2018.
There was a sharp rebound in the volume of global trade in 2010 with considerably modest rate of growth across global economy (Neagu and Nicita, 2013). This depicts the fact that global trade has more correlation with the increase of depict in opposition to the increase in actual output. Until the global financial crisis of 2008, there was availability of significant debt capacity across the globe. This depicted that it was the ability of various countries, companies and individual for continuing the increase of debts. After the year 2008, no capacity was left to pile up the debts. The final result ended up crashing global trade, while completely crashing the financial industry (Quinn and Weymouth, 2017).