Paris, June 3, 2025 - The Organisation for Economic Co-operation and Development (OECD) has released its latest Economic Outlook, projecting a slowdown in global GDP growth from 3.3% in 2024 to 2.9% in both 2025 and 2026. The revised forecast reflects concerns over escalating trade tensions, tighter financial conditions, and increased policy uncertainty.
The OECD anticipates that the U.S. economy will experience a significant deceleration, with growth slowing to 1.6% in 2025 and 1.5% in 2026. This downward revision is partly attributed to the impact of existing tariff rates. For the Euro area, a more moderate growth of 1.0% is expected in 2025 and 1.2% in 2026, supported by easing financial conditions and lower energy prices.
Despite the overall slowdown, some countries are expected to maintain relatively strong growth. China's growth, while revised down, is still projected at 4.8% in 2025 and 4.4% in 2026. The OECD emphasizes the importance of international cooperation and structural reforms to mitigate risks and foster long-term growth. They recommend a prudent approach to monetary policy and fiscal discipline to address rising government debt.