Global economic growth is expected to slow this year, with the Organization for Economic Co-operation and Development (OECD) pointing to U.S. tariffs under President Donald Trump as a major factor.
The OECD now forecasts global growth at a modest 2.9%, down from its earlier prediction of 3.1%. The group blamed a “significant” increase in trade barriers for the downgrade, warning that nearly every country will feel the effects.
“Almost everybody is facing a downgrade,” said Alvaro Pereira, the OECD’s chief economist, in an interview with the BBC.
“We’ll have a lot less growth and job creation than previously forecasted.”
Since returning to office, President Trump has imposed tariffs on numerous countries.
His unpredictable trade policies have added to global uncertainty, the OECD noted.
The organization also downgraded the U.S. growth outlook for 2025, cutting its forecast from 2.2% to 1.6%, and predicted further slowdown into 2026.
The report highlighted rising inflation risks for the U.S., despite Trump’s repeated campaign promises to reduce inflation.
Ahead of the OECD’s release, Trump claimed on social media that “Because of Tariffs, our Economy is BOOMING!”
But official data tells a different story: the U.S. economy contracted by 0.2% in the first quarter of the year—the first such decline since 2022