OECD Lowers Global Growth Forecasts
Analysis based on 8 articles · First reported Jun 03, 2025 · Last updated Jun 03, 2025
The OECD's downgraded global growth forecasts, primarily due to Donald Trump's tariffs, signal a significant negative impact on financial markets, particularly for the United States economy which faces slower growth and accelerating inflation. The increased trade barriers and policy uncertainty are expected to dampen business and consumer confidence, potentially leading to further disruptions in supply chains and reduced global demand.
The OECD has significantly lowered its global economic growth forecasts for 2025 and 2026, citing the adverse effects of Donald Trump's tariff policies. The global economy is now expected to grow by a 'modest' 2.9 percent in both years, down from previous projections. The United States economy is anticipated to be among the hardest hit, with its growth forecast reduced to 1.6 percent in 2025 and 1.5 percent in 2026, and inflation expected to accelerate to nearly four percent, double the United States — Federal Reserve's target. Other countries like China and Japan also face downgraded growth outlooks, while the Eurozone's forecast remains stable. The OECD warns that continued protectionism and trade policy uncertainty will further reduce global growth prospects and fuel inflation.
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