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The OECD slashed its global and U.S. economic growth forecasts, citing President Trump's tariffs, policy uncertainty, and slower immigration. U.S. growth is now projected at 1.6% in 2025 and 1.5% in 2026, down from earlier predictions. Global growth is expected to slow to 2.9% in 2025 and 2026. The fluctuating tariff policies have created market uncertainty, while the impact on inflation remains debated. The OECD anticipates higher inflation in the U.S., potentially nearing 4% by the end of 2025.

Prepared by Christopher Adams and reviewed by editorial team.