OECD cuts global growth forecast, citing US trade war

The OECD cut its forecast for global growth for this year and next, citing the impact of Washington’s trade war.

The slowdown will be concentrated in the US and its biggest trading partners Canada, China, and Mexico, and growth could fall short of even the latest predictions: The rich-country grouping based its projections on tariffs remaining at their current level, though many economists expect them to rise. “Weakened economic prospects will be felt around the world, with almost no exception,” the OECD chief economist said.

Other recent data paints a similar picture. A gauge of Chinese factory activity fell to its lowest level since Sept. 2022, while manufacturing indexes in South Korea, Taiwan, Vietnam, and the US also declined.