Why services won't ride to the rescue of global growth this year: Oxford Economics

SINGAPORE (Mar 14): Global services growth will slow this year and so won’t prevent world GDP growth slipping to its weakest pace since 2016, says Oxford Economics.

And while services output will be supported this year by some policy stimulus and firmer real wage growth in advanced economies, there are headwinds from weakening world trade and negative wealth effects.

Over recent decades, the services sector has generally been less volatile than manufacturing. Today, it makes up 70-80% of GDP in most major economies, according to Oxford Economics.

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