OECD downgrades global economy growth forecast to Covid-19 lows

The OECD has downgraded its global economic growth forecast to 2.9% for 2025, a significant drop from pre-pandemic levels. U.S. Economic growth is projected to fall sharply, attributed largely to trade policy uncertainties and tariffs, which are expected to hinder global trade and investment.

Rising inflation, projected at nearly 4% by the end of 2025, adds to concerns, as it may prevent the U.S. Federal Reserve from lowering interest rates. Trade barriers and economic uncertainties are expected to impact business confidence and, in turn, job growth globally.