The resilience is attributed to stockpiling ahead of US tariffs and AI-driven investments
The Organisation for Economic Co-operation and Development (OECD) raised its global growth outlook on Tuesday to 3.2%, up from June’s 2.9%.
However, the forecast is still below last year’s 3.3% growth. Projections for 2026 remain at 2.9%.
The OECD cited that the higher forecast is due to stronger-than-expected performance in the first half of the year, especially from emerging markets such as Brazil, Indonesia, and India. It attributed the resilience to stockpiling ahead of President Donald Trump’s tariffs and AI-driven US investments.
The US outlook improved to 1.8% growth in 2025, up from the 1.6% forecast a few months back. It is also down from the 2.8% seen in 2024. A 1.5% growth is expected in 2026.
The intergovernmental organization also warned that risks remain high, particularly from elevated tariffs, policy uncertainty, and weakening labor markets.
President Trump imposed duties up to 50% on imports, pushing the average tariff rate to 19.5% by August, the highest since 1933.
Overall, economic growth in America, Europe, and China is projected to slow this year.
The OECD urged governments to address trade frictions constructively, warning that prolonged tariff battles and policy uncertainty could further undermine economic stability.