(VOVWORLD) - Global GDP growth is projected to slow from 3.2% in 2024 to 3.1% in 2025 and 3% in 2026, the Organization for Economic Cooperation and Development (OECD) said on Monday in its latest Economic Outlook.
 OECD headquarters in Paris, France (Photo: OECD) |
The downward revision from its previous forecast reflects higher trade barriers in several G20 economies and increased geopolitical and policy uncertainty weighing on investment and household spending, the OECD noted. The organization warned that further increases in trade barriers would dampen global growth and contribute to inflationary pressures.
US President Donald Trump's tariff hikes will drag down growth in Canada, Mexico, and the United States while driving up inflation, the OECD forecast on Monday, cutting its global economic outlook and warning that a broader trade war would sap growth further.
China’s growth is projected to slow from 4.8% this year to 4.4% in 2026. Eurozone GDP growth is projected to pick up slightly but remain “subdued”, rising just 1.0% in 2024, slightly lower than previous estimates.