MOSCOW (Sputnik) — Protectionist policies are also expected to raise prices, harm living standards and leave countries in a worsened fiscal position, the organization added.
"Protectionism and the inevitable trade retaliation would offset much of the positive effects of proposed fiscal initiatives on domestic and global growth," the Global Economic Outlook report read.
The OECD urged to avoid an increase in protectionism by implementing structural policy packages that create more job opportunities, increase business dynamism and promote successful reallocation to ensure gains from trade.
Trade protection, which seeks to curb imports or promote exports by imposing barriers to trade, is strongly supported by US President-elect Donald Trump, who pledged to opt out of all free trade agreements under discussion and impose tariffs on imports from China and Mexico.
