The OECD has once again lowered its global economic growth forecast for this year and next

The Organization for Economic Cooperation and Development (OECD) released its latest economic outlook report on Tuesday (June 3rd), predicting that the global economic growth rate will be 2.9% in both 2025 and 2026, a reduction of 0.2 and 0.1 percentage points respectively from the forecast in March this year.

The report points out that over the past few months, trade barriers and uncertainties in economic and trade policies have significantly increased, having a negative impact on business and consumer confidence and hindering trade and investment.

Economies with relatively significant growth slowdowns include those of the United States, Canada and Mexico. In 2025 and 2026, the US economy is projected to grow by 1.6% and 1.5% respectively, which is 0.6 and 0.1 percentage points lower than the forecast in March this year.

The report predicts that the overall inflation rate of the Group of 20 (G20) countries will drop from 6.2% in 2024 to 3.6% in 2025 and 3.2% in 2026. However, the United States will be an exception. The overall inflation rate is projected to be 3.2% and 2.8% in 2025 and 2026 respectively, up by 0.4 and 0.2 percentage points from the forecast in March this year.

The report points out that the current global economic risks have risen significantly, and protectionism, trade policy uncertainties and trade barriers may intensify. Additional tariffs will further drag down the global economic growth outlook and exacerbate inflation.

The chief economist of the OECD, Pereira, said: "For all countries, including the United States, the best option is for them to sit down and reach an agreement..." It is crucial to avoid further fragmentation of trade in the coming months and years.