What are the challenges facing the world economy in 2026? DW 12/30/2025
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What are the challenges facing the world economy in 2026?  DW  12/30/2025
"The global economy has weathered a whirlwind of challenges in 2025, including sharp trade tensions, uneven yet moderate growth, and rising concerns over elevated inflation and debt levels in many parts of the world. As the year draws to a close, many of these problems are expected to continue into 2026. Global growth will moderately slow, from 3.2% in 2025 to 2.9% in 2026, the Organization for Economic Cooperation and Development (OECD) estimates."
"The US Supreme Court is expected to hand down its decision next year on whether the president can bypass US Congress to impose tariffs by invoking a national emergency. Many observers expect the apex court to affirm the lower courts' findings that the Trump tariffs are not lawful. Even if the judges strike down the tariffs, the administration might resort to other legal means to reimpose some of the duties. Hence tariffs will likely remain a major issue in 2026."
Global growth is projected to moderate from 3.2% in 2025 to 2.9% in 2026, with the economy showing resilience but remaining fragile. A sweeping new US tariffs regime in April triggered market turmoil, business uncertainty and supply chain adjustments, and average US tariffs rose sharply from 2.5% to 17.9%. The US Supreme Court is set to rule on the president's authority to impose tariffs via a national emergency, and even if struck down the administration may pursue other legal avenues. Trade friction between the US and China is likely to persist, alongside concerns about inflation and rising debt.
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