OECD revises forecast, projects slowdown in global economic growth

The latest Economic Outlook from the Organization for Economic Cooperation and Development (OECD) is projecting a slowdown in global growth.

Forecasts for 2025 and 2026 revise down expected growth by 0.2 and 0.1 percentage points respectively, citing a technical assumption that existing tariff rates as of mid-May will remain in place, despite ongoing legal disputes.

The American economy will be particularly hard hit, the report predicts, with growth of just 1.6 percent in 2025 - 0.6 percentage points lower than the OECD's March projection.

And while inflation is expected to ease across most G20 countries, the overall inflation forecast for the US this year was raised by 0.4 percentage points to 3.2 percent.

But nowhere is safe. The OECD report warns that if current trends including rising trade barriers, tighter financial conditions, weakening business and consumer confidence and increased policy uncertainty persist, they could significantly undermine the global economy.