The OECD has downgraded its global economic growth forecast, predicting a decline from 3.3% last year to 2.9% in 2025 and 2026. The slowdown heavily impacts the U.S., Canada, Mexico, and China. The organization warns that further protectionism could exacerbate this downturn, potentially increasing inflation and disrupting global trade. OECD Secretary General Mathias Cormann emphasized the need for constructive dialogue to resolve trade tensions. A hypothetical increase in U.S. tariffs could lower global economic output by 0.3% over two years, highlighting the interconnectedness of global economies.
"The slowdown is concentrated in the United States, Canada, Mexico and China, with other economies expected to see smaller downward adjustments," stated the OECD.
"If Washington raised bilateral tariffs by an additional 10 percentage points on all countries, global economic output would be about 0.3 per cent lower after two years," OECD Secretary General Mathias Cormann cautioned.
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