OECD Warns: Global Economic Growth to Slow Down in Coming Years

The Organisation for Economic Co-operation and Development (OECD), in its latest economic report released on Tuesday, has projected a slowdown in global economic growth over the next few years. The global economy, which is estimated to grow by 3.3% in 2024, is expected to decelerate to 2.9% in both 2025 and 2026.

The projections are based on a technical assumption that current tariff rates in place as of May 2025 will remain unchanged. However, the report also notes that some legal disputes remain unresolved, which could affect future outcomes.

The OECD has raised several red flags that could seriously impact global economic prospects if current trends continue:

• Disruptions in international trade

• Tighter access to credit and investment

• Declining confidence among businesses and consumers

• Persistent policy uncertainty

According to the OECD, if these issues are not addressed, they could lead to a significant deterioration in global economic potential.

The report signals that the global economy is still vulnerable and urges policymakers around the world to remain vigilant and responsive to emerging challenges.