Trade war cuts global economic growth outlook: OECD

The OECD slashed its annual global growth forecast on Tuesday, warning that US President Donald Trump's tariffs blitz would stifle the world economy - hitting the US especially hard.

- AFP

After 3.3% growth last year, the world economy is now expected to expand by a "modest" 2.9% in 2025 and 2026, the Paris-based Organisation for Economic Co-operation and Development said.

In its previous report in March, the OECD had forecast growth of 3.1% for 2025 and 3% for 2026.

Since then, Trump has launched a wave of tariffs that has rattled financial markets.

"The global outlook is becoming increasingly challenging," said the OECD, an economic policy group of 38 mostly wealthy countries.