Some of the world’s lower-income nations face a serious debt crisis which will complicate their efforts to recover from the pandemic-induced global recession.
Coordination of countries making efforts to ward off recession has to exceed both the 1930s New Deal and the Marshall Plan, which rebuilt Europe after World War II, says Angel Gurria, the head of the OECD group of advanced economies.
Yields on benchmark 10-year Treasury notes dropped to their lowest since mid-2016 as the latest salvos in the China-US trade war shook confidence in the world economy and sent investors to the safe harbour of gold.
As share markets flatlined on as uncertainty over the outlook for US interest rate cuts, the Chinese yuan's slump sapped their appetite for risk, with dealers saying state-owned banks were seen selling dollars to support the yuan.
The slump in growth in leading economies raises concerns with central banks running out of options after driving interest rates to a historic low.
The growth in the world's second-biggest economy has slowed to its weakest pace in almost three decades amid the US-China trade war.
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