World weathers US tariffs 'surprisingly well'

GLOBAL POLICY BODY OECD STILL SEES SLOW GROWTH AS 'FULL EFFECTS OF LEVIES ON TRADE HAVE YET TO BE FELT'

- BY JUSTIN VARGHESE

The world economy is proving sturdier than many analysts expected as US tariff pressures build, with rising investment in artificial intelligence and supportive fiscal and monetary settings helping sustain activity, noted the Organisation for Economic Cooperation and Development (OECD).

In its latest outlook, the Paris-based economic policy group lifted its growth projections for the US and the euro area for this year and 2025, while making smaller upgrades for several other major economies. It still sees global growth slowing to 2.9 per cent in 2026 from 3.2 per cent in 2025 as the full impact of higher US trade levies filters through.

No tariff impact?