Amid the trade war, OECD has lowered its global economic growth projections

A newly revised report on the global economic outlook by the 38-nation OECD shows that expectations for global growth have been lowered in the face of the trade war.

The current trade war sparked by U.S. President Donald Trump’s tariff policies is expected by many experts to have wide-ranging impacts across the world, including on economic growth and labour markets, and a new report has been released that further highlights this warning.

The Organization for Economic Co-operation and Development’s latest outlook report outlines its dim forecast for global economies as well as key areas to help revive growth.

The group of 38 countries changed its outlook to reflect a worse-than-expected path for global economies compared with a previously released report.

“In this challenging and uncertain environment, we have downgraded our growth projections,” the report says. “Weakened economic prospects will be felt around the world, with almost no exception. Lower growth and less trade will hit incomes and slow job growth.”

The OECD now says economic growth is expected to decline from 3.3 per cent in 2024 to 2.9 per cent this year and in 2026.

In its last report from March, growth for this year and next year was projected to be 3.1 per cent.

Among the nations highlighted, the United States, Canada, Mexico and China are expected to be the biggest contributors to the global economic decline.

The OECD sent out a separate report on May 26 featuring the economic survey for Canada, which said that although there would be an economic decline this year, there may not be a recession.