OECD Sounds Alarm on Global Growth as Trade Wars Intensify

The primary economic group reduced its prediction for worldwide economic expansion because of trade disputes initiated by Donald Trump’s tariffs. They cautioned that circumstances might deteriorate further.

The OECD stated on Monday that global economic expansion is anticipated to decelerate as a result of “trade barriers” and an increase in “geopolitical and policy uncertainties.”

It is forecasted that growth will decelerate to 3.1% in 2025 and further down to 3.0% in 2026. This projection has been revised downwards by the policy forum located in Paris, which previously anticipated growth rates of 3.3% for both this year and next. These forecasts mainly reflect lower predicted expansion in the U.S. economy as well as within countries using the Euro currency.

“Strengthening trade restrictions will lead to increased expenses for both manufacturing and purchasing processes. Maintaining an efficient, rule-driven global trading framework and keeping markets accessible continues to be crucial,” stated OECD Secretary-General Mathias Cormann.

More to follow…

Author: Louis Oelofse (along with AFP, Reuters)