OECD Cuts Global View as Trade War Hits US

Global economic growth is slowing more than expected only a few months ago as the fallout from the Trump administration's trade war takes a bigger toll on the US economy, the Organisation for Economic Cooperation and Development (OECD) said on Tuesday, revising down its outlook.

- Reuters

The global economy is on course to slow from 3.3% last year to 2.9% in 2025 and 2026, the OECD said, trimming its estimates from March for growth of 3.1% this year and 3.0% next year.

But the growth outlook would likely be even weaker if protectionism increases, further fuelling inflation, disrupting supply chains and rattling financial markets, the Paris-based organization said in its latest Economic Outlook.

US President Donald Trump's tariff announcements since he took office in January have already roiled financial markets and fuelled global economic uncertainty, forcing him to walk back some of his initial stances.