{"id":1539723,"date":"2025-06-03T22:50:00","date_gmt":"2025-06-04T02:50:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1539723"},"modified":"2025-06-03T22:50:00","modified_gmt":"2025-06-04T02:50:00","slug":"oecd-cuts-global-growth-forecast-in-light-of-tariff-threat","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/oecd-cuts-global-growth-forecast-in-light-of-tariff-threat\/1539723\/","title":{"rendered":"OECD Cuts Global Growth Forecast In Light Of Tariff Threat"},"content":{"rendered":"

OECD Cuts Global Growth Forecast In Light Of Tariff Threat<\/span><\/p>\n

\n

The global economy is projected to grow slower than previously expected this year, <\/strong>as the trade war started by the Trump administration has shaken business and consumer confidence, created a lot of uncertainty and added to inflationary pressures as prices are all but certain to rise in the current high-tariff environment.<\/p>\n

As Statista’s Felix Richter reports,<\/a> in its latest\u00a0Economic Outlook<\/a>, published on Tuesday, the OECD slashed its global growth forecast for 2025<\/strong> from 3.3 percent in December 2024 and 3.1 percent in March 2025 to just 2.9 percent, assuming that tariff rates effective as of mid-May will remain in place through 2026.<\/p>\n

Unsurprisingly, the U.S. and its main trade partners China, Canada and Mexico are expected to be most affected by the tariffs,<\/strong> with U.S. GDP growth expected to slow sharply from 2.8 percent in 2024 to 1.6 percent this year and 1.5 percent in 2026.<\/p>\n

This is down from December projections of 2.4 and 2.1 percent, highlighting the\u00a0adverse effect<\/a>\u00a0that Trump\u2019s tariff policy is expected to have on the American economy.<\/p>\n

<\/a><\/p>\n

You will find more infographics at Statista<\/a><\/em><\/p>\n

“The global economy has shifted from a period of resilient growth and declining inflation to a more uncertain path,\u201d <\/strong>OECD Secretary-General Mathias Cormann said. <\/em><\/p>\n

\u201cOur latest economic outlook shows that today\u2019s policy uncertainty is weakening trade and investment, diminishing consumer and business confidence and curbing growth prospects.” <\/em><\/p>\n

The effect of the new trade barriers is expected to be most severe through 2025, as global growth is expected to slow to 2.6 percent by the fourth quarter of this year, before gradually climbing back to 3.0 percent by the end of 2026.<\/p>\n

\u201cPolicy has a crucial role to play to tackle uncertainty and boost growth,\u201d<\/strong> the OECD\u2019s chief economist \u00c1lvaro Pereira wrote in an\u00a0editorial<\/a>\u00a0accompanying the report. <\/em><\/p>\n

\u201cFirst and foremost, it is essential to avoid further trade fragmentation and trade barriers.<\/strong> Agreements to ease trade tensions and lower tariffs and other trade barriers will be instrumental to revive growth and investment and avoid rising prices,\u201d Pereira said.<\/em><\/p>\n

If trade barriers aren\u2019t lowered, he warned, the growth impact would be \u201cquite significant\u201d with \u201cmassive repercussions for everyone.\u201d<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 06\/03\/2025 – 18:50<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/economics\/oecd-cuts-global-growth-forecast-light-tariff-threat<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

OECD Cuts Global Growth Forecast In Light Of Tariff Threat The global economy is projected to grow slower than previously expected this year, as the…<\/p>\n","protected":false},"author":0,"featured_media":1539724,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1539723","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1539723","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1539723"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1539723\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1539724"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1539723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1539723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1539723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}