The global economy is shifting gears—but not in a good way. The OECD just dropped its latest forecast, predicting GDP growth will slow to 3.2% in 2025 and 2.9% in 2026. 📉 Why? Think tariffs, trade tensions, and companies sweating over shrinking profit margins.
🔍 Key Drivers: The U.S. has cranked up tariffs to levels not seen since the Great Depression (yes, 1933!), with an average rate hitting 19.5% this year. While businesses initially absorbed some costs, the full impact is still rolling in like a slow-motion wave. 🌊
🇺🇸 U.S. Slowdown: America’s growth is set to dip from 2.8% in 2024 to 1.8% in 2025, thanks to shrinking immigration and tech investments struggling to offset tariff pain. Meanwhile, the eurozone faces a modest 1.2% growth in 2025—held back by geopolitical drama and trade friction. 💼
💡 Silver Lining? Emerging markets showed surprising resilience earlier this year, but the OECD warns risks like inflation comebacks and financial instability could slam the brakes harder. Their advice? ‘Go big on AI and structural reforms’ to future-proof economies. 🚀
Reference(s):
OECD's new global GDP growth forecast: 3.2% in 2025, 2.9% in 2026
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