OECD Downgrades Global Growth Forecast to Pandemic-Era Lows Amid Trade War Concerns

The Organisation for Economic Co-operation and Development (OECD) has slashed its global growth projections to levels last seen during the COVID-19 crisis, citing escalating trade tensions as a primary drag. The Paris-based institution now anticipates worldwide GDP expansion will decelerate to 2.9% in both 2025 and 2026—marking the first sub-3% outlook since the pandemic’s economic shockwaves in 2020.

Trade policy uncertainty, particularly surrounding former U.S. President Donald Trump’s tariff measures implemented in April, continues to dampen investment and productivity across G20 nations. The OECD’s June 3 report emphasizes that resolution of ongoing trade disputes could serve as a critical lever for economic revival, though current trajectories suggest prolonged stagnation.