Global Growth Slows Faster Than Expected Amid Trade War, Inflation Risks

Global economic growth is weakening faster than anticipated due to the escalating impact of the Trump administration's trade war, according to Reuters. The Organization for Economic Cooperation and Development now forecasts global economic growth will slow to 2.9% in 2025 and 2026, down from earlier estimates of 3.1% for 2025 and 3.0% for 2026. The OECD warned that rising protectionism could further weaken global growth by disrupting supply chains, raising inflation, and unsettling markets. Secretary General Mathias Cormann said a 10-point increase in U.S. tariffs could reduce global output by 0.3% after two years. The OECD warned that new tariffs might boost U.S. manufacturing but would also raise import prices, hurt consumer spending, and deter corporate investment.