OECD raises global growth forecast for 2025
The OECD just bumped up its 2025 global growth forecast to 3.2%, thanks to strong emerging markets and a rush of exports before new US tariffs kicked in.
These tariffs are now at their highest level since 1933, affecting how countries trade with each other.
Growth slowdown ahead
While things look better for 2025, the boost won't last long. Growth is expected to slow back down to 2.9% in 2026 as the effects of tariffs fade and job markets, especially in the US, lose steam.
The US economy is set to cool off from 1.8% growth this year (2025) to just 1.5% by next year (2026).
The UK faces similar challenges with tighter budgets and slower growth ahead.
Inflation risks and trade war concerns
The OECD warns inflation could make a comeback because of tariffs and rising food prices, plus there's extra risk from crypto market swings and government budget pressures.
On the bright side, most big economies are avoiding all-out trade wars by choosing negotiation over retaliation—a rare bit of good news in a tricky global moment.