The OECD raised its global growth forecast to 3.2% for 2025, up from 2.9% in June, citing stronger-than-expected resilience in many economies. This upward revision is partly due to front-loaded investment before higher tariffs and strong AI investment in the US. However, the OECD warns of significant risks, including high policy uncertainty, elevated tariffs (reaching 19.5% in the US, the highest since 1933), and softening labor markets. Inflation is expected at 3.4% across G20 nations, but the report highlights potential risks from further tariff hikes and resurgent inflation.

Prepared by Christopher Adams and reviewed by editorial team.