The Organisation for Economic Co-operation and Development (OECD) on Monday lowered its global economic growth forecasts for this year and next, citing trade barriers, as well as geopolitical and political uncertainties that are negatively impacting investments and household spending.
The OECD now estimates that the global economy will grow by 3.1% in 2025, down from the 3.3% forecasted in December.
For next year, the organization has reduced its global economic growth projection by 0.3 percentage points to 3%.
The eurozone economy is now expected to grow by 1% this year and 1.2% next year, compared to the previous forecasts of 1.3% and 1.5%, respectively.
Germany, Europe’s largest economy, is forecasted to expand by 0.4% this year and 1.1% in 2026, down from the previous estimates of 0.7% and 1.2%.
Meanwhile, the OECD has revised down the U.S. economic growth forecast for 2025 by 0.2 percentage points to 2.2%, and for 2026, by 0.5 percentage points to 1.6%.
For Russia, the OECD expects economic growth of 1.3% this year and 0.9% next year.