00:00The global economy is expected to slow from 3.3% last year to 2.9% in both 2025 and 2026,
00:10driven by the anticipated fallout from recent tariffs introduced by US President Donald Trump.
00:16In its latest report, the Organization for Economic Cooperation and Development, OECD,
00:22warns that rising protectionism could further weaken growth, fuel inflation, disrupt supply chains, and rattle markets.
00:30In its previous report in March, the OECD had forecast growth of 3.1% for 2025 and 3.0% for 2026.
00:41Since then, Trump has launched a wave of tariffs that has rattled financial markets and fueled global economic uncertainty.
00:49The OECD also downgraded US growth for 2025 from 2.2% to 1.6%,
00:56projecting a further slowdown to 1.5% in 2026.
01:01This marks a sizable cut as the Organization had previously expected the world's biggest economy to grow 2.2% this year and 1.6% next year.
01:12The agency warned that while tariffs may push some manufacturing back to the US, as the Trump administration claimed,
01:18they also risk squeezing consumer spending and deter business investment.
01:23As for China, the OECD expects the second biggest economy to grow 4.7% this year and 4.3% in 2026,
01:32largely unchanged from earlier forecasts.
01:34The impact of US tariffs in China, it's said, is likely to be cushioned by government subsidies and welfare transfers.
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