OECD Lowers Global Growth Forecast Amid U.S. Tariff Impact
The OECD has revised its global growth forecast to 2.9%, citing U.S. tariffs and economic uncertainty as key factors.
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Overview
The OECD has revised its global economic growth forecast down to 2.9% for 2025, a significant drop from 3.3% in 2024. The U.S. economy is projected to slow further to 1.5% in 2026, down from 1.6% this year, largely due to President Trump's tariffs, which have raised average rates from 2.5% to 15.4%. These tariffs are increasing costs for consumers and manufacturers, contributing to a decline in business and consumer confidence. Meanwhile, the eurozone is expected to see slight growth, aided by potential interest rate cuts from the European Central Bank.
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Analysis
- The article presents a negative outlook on the global economy, emphasizing reduced growth forecasts and trade tensions.
- Concerns over tariffs are highlighted, suggesting they may worsen economic conditions.
- Major economies like the U.S., Canada, Mexico, and China are particularly affected by this uncertainty.
Articles (12)
FAQ
The OECD lowered its global growth forecast due to U.S. tariffs and economic uncertainty, which are increasing costs for consumers and manufacturers and contributing to a decline in business and consumer confidence.
U.S. tariffs have led to slowed growth, higher consumer prices, job losses, and market volatility in the U.S. economy. The tariffs have also resulted in a contraction in the size of the U.S. economy.
The eurozone is expected to see slight growth, which is not significantly affected by U.S. tariffs. The growth is potentially aided by interest rate cuts from the European Central Bank.
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