Hey everyone! The OECD just released its latest global growth forecast, and the numbers show a slowdown ahead. After a 3.3% boost in 2024, global GDP is expected to cool to 3.2% in 2025 and dip further to 2.9% in 2026. 🧐
What's behind the shift? The OECD points to front-loading winds down on trade, higher tariff rates—especially in the U.S. where effective tariffs hit 19.5% by August—and ongoing policy uncertainty that's weighing on investment.
Interestingly, many emerging market economies endured better-than-expected growth in early 2025, thanks to companies rushing to place orders before tariffs kicked in.
On the home front, the U.S. economy is forecast to slow from 2.8% growth in 2024 to 1.8% in 2025 and 1.5% in 2026, as tech investment faces drag from trade barriers and lower net immigration.
Across the eurozone, growth is set at 1.2% in 2025 and 1.0% in 2026. Looser credit conditions help, but trade frictions and geopolitics still cap momentum.
The big takeaway? To keep economies humming, the OECD emphasizes structural reforms and tech adoption—think artificial intelligence—to lift living standards sustainably. 💡
Stay tuned for more insights on how the world is adapting to these shifts! 🌍
Reference(s):
OECD's new global GDP growth forecast: 3.2% in 2025, 2.9% in 2026
cgtn.com
