OECD cuts global growth prospects, citing geopolitical uncertainty

The OECD lowered its projections for global growth in 2025, citing trade barriers and increased geopolitical uncertainty.

The Paris-based intergovernmental organisation, which represents the world’s richest economies, cut its global GDP growth forecast for this year from 3.3% to 3.1% in an interim report published Monday.

“Significant changes have occurred in trade policies that if sustained would hit global growth and raise inflation,” the report warned, adding that higher government spending on defense could boost growth in the short term but potentially add to longer-term fiscal pressures.