The OECD lowered its economic growth forecast for most G20 nations for 2025 on Tuesday, including all of North America and China. File Photo by Stephen Shaver/UPI | License Photo
June 3 (UPI) -- The Organization for Economic Cooperation and Development on Tuesday downgraded its 2025 growth forecasts for the U.S. economy and globally, slashing its estimates to 1.6% and 2.9 % -- assuming current trade tariffs remain unchanged.
In its biannual report on the health of the global economy, the OECD blamed the downward revision on what it said was an "increasingly challenging" environment with the slowdown concentrated in the tariff-impacted economies of North America and China.
Immediately prior to the imposition of tariffs by U.S. President Donald Trump on all of America's trading partners on April 2, the OECD was still projecting 2025 growth of 2.2%. Now it thinks U.S. inflation could rise to close to 4% near the end of this year, while growth will decelerate again in 2026 to 1.5%.
The OECD sees drastic slowdowns in Canada and Mexico, the United States' two largest trading partners, with GDP growth in Mexico falling by more than two-thirds to 0.4% in 2025, while Canada's economy will grow by just 1%.
