Global GDP growth projection revised down to 3.2 pct in 2025, 2.9 pct in 2026: OECD

Global GDP growth is projected to decrease from 3.3 percent in 2024 to 3.2 percent in 2025 and further to 2.9 percent in 2026, the Organization for Economic Cooperation and Development (OECD) said Tuesday in its latest Economic Outlook.

According to the OECD, the downward revision from its previous forecast is due to "front-loading ceases and higher tariff rates and still-high policy uncertainty" that dampen investment and trade.

The global growth in first half of 2025 was more resilient than anticipated, especially in many emerging-market economies. Industrial production and trade were supported by front-loading ahead of higher tariffs, the report noted.

The report shows that the tension in financial markets across both developed and emerging economies have been eased, with the rising of asset prices and improvement of credit supply. However, due to risks like increased tariff rates, mounting inflationary pressure and fiscal vulnerabilities in certain economies, global economic growth could be negatively impacted.

The strong investment in the AI sector in the U.S. is being offset by high level of uncertainty sparked by the country's domestic economic policies, the report said. It is projected that the U.S. economic growth rate will be 1.8 percent in 2025 and 1.5 percent in 2026.

Since May, U.S. bilateral tariff rates have increased on almost all countries. The OECD estimated the effective U.S. tariff rate rose to 19.5 percent at the end of August, the highest level since 1933.

In addition, the eurozone's economy will rebound slightly, with growth anticipated to reach 1.2 percent, according to the OECD.

Global GDP growth projection revised down to 3.2 pct in 2025, 2.9 pct in 2026: OECD

Chinese Premier Li Qiang on Thursday presided over a State Council executive meeting that studied work on building a unified national market and reviewed and approved a plan for the development of a modern emergency response system during the 15th Five-Year Plan period (2026-2030).

Noting that building a unified national market is essential to advancing high-quality development, the meeting called for deepening institutional frameworks in areas such as property rights protection, market access, fair competition, social credit and market exit mechanisms.

The meeting also urged efforts to advance high-standard connectivity of market infrastructure to facilitate smooth economic circulation and effectively reduce logistics costs across society.

Emergency management is critical to protecting people's lives and property, the meeting said. It called for accelerating the development of a modern emergency response system, deepening reform and innovation in emergency management, and improving coordinated response mechanisms.

Efforts should be made to strengthen risk prevention at the source, enhance monitoring, forecasting and early warning, and accelerate a shift in governance toward proactive prevention, according to the meeting.

A draft revision of the Law on the People's Bank of China was also discussed and approved in principle at the meeting, which decided to submit the draft to the Standing Committee of the National People's Congress for deliberation.

Chinese premier chairs State Council executive meeting