Catenaa, Tuesday, April 01m 2025- The Organisation for Economic Co-operation and Development (OECD) has warned that escalating trade tensions and policy uncertainty could slow global growth in the coming years.
The World Economic Forum Report can be seen here.
In its latest report, the OECD predicts global GDP will decline from 3.2% in 2024 to 3.0% by 2026. The US economy is expected to cool to 1.6% growth, while China’s expansion could slow to 4.4%.
The report cites rising tariffs, supply chain disruptions, and inflation as key threats to economic momentum.
The warning comes as trade tensions mount, with the US planning to increase tariffs by 25% on imports from Canada and Mexico. The OECD urged policymakers to enhance international cooperation and market resilience.
Meanwhile, the UK and India are reportedly close to finalizing a free trade agreement, which could boost investment and ease supply chain constraints.
Negotiations, which began under former UK Prime Minister Boris Johnson, have gained momentum following recent elections.
In other trade developments, Germany’s steel industry faces stagnation due to energy costs and Chinese competition, while Sweden is boosting spending to support construction.
Additionally, US President Donald Trump has invoked emergency powers to ramp up domestic mineral production, intensifying trade disputes with China and Canada.
