"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 organisation, comprising the world's 38 most advanced economies, says the world economy has proved resilient this year but remains fragile."
"US President Donald Trump shocked the world in April by imposing a sweeping new tariffs regime aimed at reshaping global trade flows and slashing large US deficits. The move sparked market turmoil, business uncertainty and supply chain adjustments. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Washington has since struck deals with many of its trade partners. Still, the average US tariff has gone from 2.5% when Trump returned to the White House in January to 17.9% the highest since 1934, according to calculations by Yale University's Budget Lab."
"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 will moderately slow from 3.2% in 2025 to 2.9% in 2026, per OECD estimates. The world economy proved resilient in 2025 but remains fragile, facing sharp trade tensions, uneven growth, and elevated inflation and debt pressures. A new US tariffs regime raised the average US tariff from about 2.5% to 17.9%, triggering market turmoil, business uncertainty and supply-chain adjustments. Washington has negotiated deals with many partners but tariffs remain high. The US Supreme Court is expected to rule on presidential tariff powers next year; even if some duties are struck down, other legal routes may sustain tariffs. US–China trade frictions are likely to persist despite a negotiated truce.
Read at www.dw.com
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