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The OECD’s numbers are more downbeat than the IMF’s for many economies, particularly the euro region and the U.K., as the organization warns that things could get worse.

However, there have been some small signs recently that the global economy is stabilizing, while the U.S. and China are making progress on ending their lengthy trade dispute. JPMorgan’s global composite Purchasing Managers Index rose in February for the first time in three months, while some euro-area gauges were also better than anticipated.

“Getting a clear steer on global growth is very difficult right now, but at least, the latest PMIs have some positives,” HSBC economist James Pomeroy said in a note on Wednesday.

Central banks including the Federal Reserve have already responded to the changed circumstances, and the European Central Bank may soon follow. China, forced to lower its goal for economic growth this week, has rolled out tax cuts to stimulate its economy.

The OECD outlook goes against hopes that sources of weakness at the end of 2018, including lower confidence, would prove temporary. That creates a headache for policy makers who may now need to find more combative solutions with limited room for maneuver on the fiscal and monetary side.

While central banks should stay in expansionary mode, the group called for structural reforms and fiscal stimulus in the European countries that could afford it, saying that “monetary policy alone cannot resolve the downturn in Europe or improve the modest medium-term growth prospects.”