PARIS, Dec. 2 (Xinhua) -- Global GDP growth is projected to slow from 3.2 percent in 2025 to 2.9 percent in 2026, consistent with the September forecast, the Organization for Economic Cooperation and Development (OECD) said Tuesday in its latest Economic Outlook.
According to the report, supportive macroeconomic policies, improved financial conditions fueled by optimism about the potential impact of new technologies, and rising AI-enabling investment and trade have collectively bolstered global demand.
The report warns that further increases or swift changes in trade barriers would weaken growth, add to policy uncertainty, and cause significant disruptions to global supply chains.
It added that assets with high valuations based on optimistic expectations for AI development may experience sudden corrections, while fiscal vulnerabilities in many countries could hinder economic growth.
The report projects that U.S. economic growth will slow from 2.8 percent in 2024 to 2.0 percent in 2025, and further decelerate to 1.7 percent in 2026, due to the impact of additional tariffs, slowing private consumption and the federal government shutdown. The eurozone economy is forecast to grow by 1.3 percent in 2025 and 1.2 percent in 2026.
The full effects of higher tariffs have yet to be felt, but are becoming increasingly evident in spending choices, business costs and consumer prices, especially in the United States.
The report stresses that, in the face of these challenges, key policy priorities are to ensure a lasting decline in trade tensions, policy uncertainty and inflation, address emerging financial stability risks, establish a credible fiscal path to debt sustainability, and implement ambitious reforms to strengthen productivity growth.
OECD Secretary-General Mathias Cormann said constructive dialogue between countries is essential to ensuring a durable resolution to trade tensions and improving the global economic outlook. He added that a well-functioning open global market means better living standards and stronger growth. ■