The Organisation for Economic Co-operation and Development (OECD), an international economic organization established in 1961 and headquartered in Paris, France, has revised its economic forecasts for both the United States and the global economy. The OECD's latest estimates indicate that economic growth in the U.S. and worldwide will be lower than previously anticipated. This adjustment comes as increased trade barriers and geopolitical uncertainties continue to impact investment and household spending in several G20 economies.
The OECD, which consists of 38 member countries, aims to promote economic growth and prosperity. It serves as a forum for these nations to discuss and address various economic issues, conducting extensive research and analysis to provide valuable insights into economic trends. The organization's reports and data, based on information from its member countries, are widely used by policymakers, businesses, the media, and the public.
In its latest analysis, the OECD projects that global GDP growth will moderate from 3.2% in 2024 to 3.1% in 2025, and further decline to 3.0% in 2026.
"Global GDP growth is projected to moderate from 3.2% in 2024, to 3.1% in 2025 and 3.0% in 2026, with higher trade barriers in several G20 economies and increased geopolitical and policy uncertainty weighing on investment and household spending," the OECD report states.
Similarly, the U.S. economy is expected to slow down after a period of strong growth. The OECD forecasts that annual GDP growth in the United States will decrease to 2.2% in 2025 and continue to decline to 1.6% in 2026.
"Annual GDP growth in the United States is projected to slow from its strong recent pace, to be 2.2% in 2025 and 1.6% in 2026," according to the OECD's projections.
These forecasts serve as critical tools for decision-makers across various sectors, providing them with insights necessary for informed planning and strategy development. The OECD's data and analysis are available online, ensuring transparency and accessibility for all stakeholders.