The OECD forecasts global economic growth to slow to 2.9 per cent in 2025 and 2026, down from 3.3 per cent last year, as rising trade policy uncertainty, tighter financial conditions, and weakening confidence weigh on prospects. The slowdown will hit the US, Canada, Mexico, and China the hardest. US growth is expected to fall from 2.8 per cent in 2024 to 1.6 per cent in 2025, while China's growth will ease to 4.7 per cent in 2025 and 4.3 per cent in 2026. The euro area is forecast to see a modest rise to 1.0 and 1.2 per cent in 2025 and 2026, respectively. Inflation remains a concern, with higher tariffs pushing prices up despite lower commodity costs. G20 inflation is projected to ease from 6.2 per cent in 2024 to 3.6 per cent in 2025. OECD Secretary-General Mathias Cormann called for greater international cooperation to keep trade open and prevent further disruptions. The outlook highlights risks from trade fragmentation, persistent inflation, and financial volatility, particularly for low-income countries. The OECD urged governments to pursue structural reforms to boost investment and productivity, warning that stagnant public and housing investment are holding back growth. Chief Economist Álvaro Santos Pereira stressed the need for bold policy action to strengthen the global economy. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
