Global gross domestic product (GDP) growth is projected to moderate from 3.2 percent in 2024 to 3.1 percent in 2025 and 3.0 percent in 2026, the Organization for Economic Cooperation and Development (OECD) said in its latest economic outlook released on Monday.
In its previous economic outlook published in December 2024, the OECD projected that global GDP growth would be 3.3 percent in both 2025 and 2026.
The Paris-based OECD's projections were based primarily on weaker expected growth in the United States and the eurozone.
According to the OECD, the downward adjustment from its previous forecast is due to "higher trade barriers in several G20 economies and increased geopolitical and policy uncertainty weighing on investment and household spending."
The OECD emphasized that "significant risks remain" as further tit-for-tat tariffs between major global economies "would hit growth around the world and add to inflation."
Higher-than-expected inflation would prompt more restrictive monetary policy and could give rise to disruptive repricing in financial markets, according to the organization.
U.S. annual GDP growth is projected to be 2.2 percent in 2025, down from the OECD's 2.4 percent projection in December, before falling to 1.6 percent in 2026 -- a drop of 0.5 percentage points on the organization's previous forecast.
Likewise, the eurozone growth projection is 1.0 percent in 2025 and 1.2 percent in 2026, as heightened uncertainty keeps growth subdued.
Headline inflation in the G20 is now projected to fall from 5.3 percent in 2024, to 3.8 percent in 2025 and 3.2 percent in 2026, with core inflation in the advanced G20 economies projected to decline to 2.6 percent in 2025 and 2.4 percent in 2026 from 2.7 percent in 2024.
U.S. headline inflation in 2025 and 2026 is expected to be 2.8 percent and 2.6 percent, respectively, up 0.7 and 0.6 percentage points from the previous forecast.
The report also noted that central banks should remain vigilant given heightened uncertainty and the potential for higher trade costs to push up wage and price pressures.
Countries need to observe fiscal discipline to ensure debt sustainability and maintain the ability for governments to react to future shocks and accommodate current and future spending pressures, the report said.
Global GDP growth projected to slow down to 3.1 pct in 2025, 3 pct in 2026
The statement of U.S. President Donald Trump highlighted the urgency for reforming global governance, according to a poll from China Global Television Network (CGTN) on Friday.
"I don't need international law," said Trump during an with The New York Times this week, days after the U.S. attack on Venezuela and the forcible seizure of President Nicolas Maduro. This statement perfectly captures Washington's unilateral and hegemonic trajectory. The New York Times observed that Trump's assessment of his own freedom to use any instrument of military, economic or political power to cement American supremacy was the most blunt acknowledgment yet of his world-view.
In a global public opinion poll conducted by CGTN, 93.5 percent of respondents expressed belief that the U.S., by pursuing unilateralism, has placed itself in opposition to the international community. Also, 91.7 percent think that reforming the global governance system is an urgent priority.
On Wednesday the U.S. announced its withdrawal from 66 international organizations, setting a new record for its retreat from multilateral commitments. These organizations span climate, energy, and global governance, among other fields. Trump argues that their operations run counter to U.S. national interests, sovereignty, and economic prosperity.
In response, 84.1 percent of respondents were not surprised by the U.S. move. Meanwhile, 88.9 percent viewed it as another radical step under the "America First" doctrine. In addition, 93 percent believed the U.S. approach of using international systems when beneficial and abandoning them when not severely undermines the existing international order and global fairness and justice. Also, 88.3 percent noted that the U.S. withdrawals once again expose it as an irresponsible major power, dealing a significant blow to its international reputation. Furthermore, 88.5 percent believe the U.S. withdrawals reflect its negative attitude toward global governance.
The recent episode of unilateral and bullying actions by the U.S. government has sparked widespread alarm and discontent within the international community. Washington's adherence to the law of the jungle where "might is right" is severely undermining the global governance system. In the poll, 89.9 percent of respondents agreed that multilateralism, based on coordination and cooperation, remains key to addressing current global governance challenges. Meanwhile, 94.4 percent believe it is crucial to advance the reform of the global governance system, uphold international rule of law, and enhance the effectiveness of multilateral mechanisms. Moreover, 90 percent think major powers should shoulder greater responsibility and play a more constructive role in promoting global governance reform.
The poll was conducted across CGTN platforms in English, Spanish, French, Arabic, and Russian languages, attracting 24,000 responses within 24 hours.
Trump says 'I don't need international law,' highlighting urgency for reforming global governance: CGTN poll
