OECD Raises 2025 Global Growth Forecast to 3.2%

The OECD revises its global growth projection for 2025 to 3.2%, citing strong AI spending in the U.S. and government measures in China as key factors, while cautioning about the ongoing impact of higher U.S. tariffs.

165d ago

Summary

The OECD has raised its 2025 global growth forecast to 3.2%, up from a previous estimate of 2.9%. This revision reflects resilience in the global economy, bolstered by strong AI investments in the U.S. and fiscal support in China. However, the organization warns that the impact of higher U.S. import tariffs, now at the highest level since 1933, will continue to weigh on global trade and investment. U.S. growth is forecast to ease to 1.8% in 2025, with a slowdown expected in China and the euro area. Central banks are expected to cut rates further if inflation continues to subside.

Terms & Concepts

OECD: The Organisation for Economic Co-operation and Development is an intergovernmental organization that provides policy advice and economic forecasts for its member countries and the global economy.
AI investment: Investment in artificial intelligence technologies, which is driving growth in various sectors, especially in the United States, according to the OECD.
Effective U.S. tariff rate: The average tax rate levied on goods imported into the United States, which has reached 19.5%, the highest since 1933, as per the OECD's latest report.