Global Economic Growth Outlook Revised Downward by OECD

A recent publication by the Organization for Economic Co-operation and Progress (OECD) indicates that global economic growth is projected to decelerate to a “modest” 2.9%, a drop from the earlier estimate of 3.1%. This adjustment, as reported by BBC News, is primarily attributed to the impact of tariffs imposed during Donald Trump’s presidency.The OECD has also revised its forecast for U.S. economic growth in 2025 down from 2.2% to just 1.6%, with expectations of further slowdowns in subsequent years.

The Paris-based organization, which provides guidance on economic strategies to governments worldwide, pointed out that an increase in trade barriers has significantly contributed to this outlook. they cautioned that these weakened economic conditions are likely to resonate globally, affecting nearly every nation.

Trump’s erratic tariff policies have fostered uncertainty among businesses and investors alike, leading many companies to rethink their strategies regarding international trade.

In a press release dated June 3rd, the OECD warned: “An escalation in trade tensions through new tariffs and retaliatory measures could exacerbate the slowdown and disrupt international supply chains.” They also noted that inflation might persist longer than expected due to increased trade costs or tight labor markets in various economies—this could lead central banks toward tighter monetary policies and further weaken growth prospects.

On social media earlier on June 3rd, Trump claimed: “Because of Tariffs, our Economy is BOOMING!” However, recent data revealed a contraction of the U.S. economy at an annual rate of 0.2% during Q1 this year—the first decline since last year.