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OECD Warns of Global Economic Slowdown Due to Middle East Crisis, Impacting AI Investment
OECD Warns of Global Economic Slowdown Amid Middle East Crisis
The OECD has warned that if the Middle East energy crisis persists until 2027, global economic growth could slow to just 1.8%, potentially pushing some economies into recession. This could mark the deepest economic slowdown in four decades. The failure to resolve the Middle East energy crisis could plunge the world into its worst-case scenario. Tensions between the US and Iran are escalating, diplomacy is faltering, and the risk of wider conflict is growing.
Oil Price Surge and Dual Nature of AI Investment Market
Oil prices have risen for a third consecutive day, reflecting the impact of geopolitical risks on the market. However, US AI-related tech stocks have remained robust despite these external shocks, indicating market optimism. Kathleen Brooks, Research Director at XTB, emphasized that investors need to acknowledge that geopolitical risks can impact massive tech companies, even if they appear resilient. Meanwhile, US job openings unexpectedly jumped in April to the highest level in almost two years, indicating a resilient labor market.
Potential Resurgence of Trade War and Asian Market Trends
The US is proposing tariffs of at least 10% on imports from 60 trading partners, signaling a potential resurgence of trade wars. This comes after earlier levies were struck down by the Supreme Court, highlighting that Donald Trump's trade policies continue to fuel market uncertainty. Meanwhile, Asian stock indices have outperformed, largely driven by the growth of their AI companies. In contrast, European markets, particularly the UK, have lagged due to fewer AI stocks, underscoring AI's current role as a major market driver.
*Source: YouTube: Reuters (2026-06-03)*
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