OECD's Gurria: Trade War Has Cost 1% in Terms of Global Growth

The video discusses the negative impact of trade wars on global economic growth, highlighting the uncertainty they create, which hinders investment. It examines the role of central banks in addressing economic slowdowns, noting their shift from raising to cutting interest rates. The video also covers tax transparency efforts, with 120 jurisdictions exchanging information to prevent tax evasion. Finally, it addresses the challenges of taxing the digital economy, emphasizing the need for international consensus to ensure fair taxation of digital businesses.

What is one major consequence of trade wars on the global economy?

• Increased certainty in markets

• Higher investment rates

• Decreased global growth

• Stable tariff rates

How do trade wars affect investment decisions?

• They have no impact on investments

• They create uncertainty, leading to reduced investments

• They stabilize market conditions

• They encourage more investments

What role do central banks play in addressing trade war impacts?

• They can completely solve trade uncertainties

• They have limited tools to mitigate the slowdown

• They increase tariffs to stabilize the economy

• They focus solely on inflation control

What is a significant achievement in tax transparency?

• Complete elimination of tax evasion

• Reduction in global tax rates

• Increased tax rates for digital companies

• 120 jurisdictions exchanging information automatically

How much has been collected due to improved tax transparency?

• $200 billion

• $50 billion

• $300 billion

• $110 billion

What is a key challenge in taxing the digital economy?

• Need for international consensus

• Over-regulation of traditional businesses

• Lack of digital companies

• Excessive physical presence

Why is there a need for consensus in taxing the digital economy?

• To reduce the number of tax jurisdictions

• To increase the number of digital companies

• To prevent digital companies from escaping taxation

• To ensure all companies pay the same tax rate