Global downturn? "Weakened economic prospects will be felt around the world, with almost no exception," said Organization for Economic Cooperation and Development Chief Economist Alvaro Pereira, announcing that the organization has slashed global growth forecasts for the second time this year, mostly due to tariffs. "Lower growth and less trade will hit incomes and slow job growth."
"The OECD now forecasts global economic growth to slow to 2.9% this year from 3.3% in 2024," notes Bloomberg. "It expects the rate of expansion in the US will tumble further, to 1.6% from 2.8%—an outlook that is significantly lower than its projection in March."
Top trade representatives from the 38 member countries in the OECD—including officials from both the U.S. and China—will be meeting in Paris this week. Figuring out how to navigate a future with far more trade barriers than before is basically the top agenda item. "Agreements to ease trade tensions and lower tariffs and other trade barriers will be instrumental to revive growth and investment and avoid rising prices," said the OECD in a statement. "This is by far the most important policy priority."
