On January 28, 2025 in London, England, there is no rain on Oxford Street, shoppers and tourists touting the worst weather of the latest storm on Oxford Street. Oxford Street is the main retail center at the western end of the capital and is Europe’s busiest shopping street, with about 500,000 visitors to its approximately 300 stores every day, most of which are fashion and high street clothing stores. (Photo by Mike Kemp/image via Getty in the picture)
Mike Kemp | in pictures | Getty Images
Both the U.S. and global economic growth will be lower than previously expected, according to the latest estimates from the Organization for Economic Cooperation and Development.
“Global GDP growth rate was dispatched from 3.2% in 2024 to 3.1% in 2025 and 3.0% in 2026, with higher trade barriers in several G20 economies increasing geopolitical and policy uncertainty about investment and household spending,” the OECD said in its temporary economic outlook report on Monday.
“The annual GDP growth in the U.S. is expected to decline from its recent strong pace, at 2.2% in 2025 and 1.6% in 2026.”
In previous forecasts published in December, the OECD estimated global economic growth to be 3.3% this year and the next year. The U.S. economy is expected to grow by 2.4% in 2025 and 2.1% in 2026.
The OECD said its latest forecast was “based on the assumption that bilateral tariffs between Canada and the United States and additional levies between Mexico and the United States have increased by 25 percentage points from April.”
The report notes that if tariff rates are lower or applied to fewer commodities, economic activity will be stronger and inflation will be lower than expected, but “but global growth is still weaker than previously expected.”
This is a developing story, please check out the update.
