OECD lowers global outlook as Trump trade war hits US growth

Fallout in China partly offset by government subsidies and welfare spending

20250603 OECD US

As things stand, OECD predicts the U.S. economy will grow only 1.6% this year and 1.5% next year. © Reuters

PARIS (Reuters) -- Global economic growth is slowing more than expected only a few months ago as the fallout from the Trump administration's trade war takes a bigger toll on the U.S. economy, the OECD said on Tuesday, revising down its outlook.

The global economy is on course to slow from 3.3% last year to 2.9% in 2025 and 2026, the Organisation for Economic Cooperation and Development said, trimming its estimates from March for growth of 3.1% this year and 3.0% next year.

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