Wainwright Marks - Trade and Oil Threaten Economic Growth

With the global economy being boosted by monetary stimulus and low borrowing costs, Wainwright Marks analysts anticipate another two years of economic growth but say oil and trade remain the greatest risks to expansion.

Gross domestic product growth around the world is averaging almost 4 percent, the outlook for the economy is positive but, after a recent report released by the Economic Cooperation and Development (OECD), Wainwright Marks economists say certain issues could jeopardize long hoped for progress.

Global GDP is almost at its long term average of 4 percent which was the average before the start of the financial crisis. Joblessness across the OECD's highly-developed member states has reached its lowest level in 35 years.

However, a worrying combination of rising trade tensions, increasing oil prices and certain market instabilities could result in a serious risk to the current trend of global economic recovery.

Economic growth is still being driven by low borrowing costs and monetary easing schemes and Wainwright Marks analysts say this means growth is not yet entirely organic, making it more susceptible to the negative impact of market shifts and political troubles.

Oil prices have increased dramatically over the past twelve months and, if they continue to do so at this rate, Wainwright Marks analysts see a return to $100 a barrel. This could result in increased inflationary pressure and reduced domestic expansion.

The move away from monetary stimulus and hiking of interest rates could also expose economic weaknesses.