Trump trade wars are slowing global growth and fuelling inflation, says OECD
Source: The Guardian
The OECD cut its forecast for UK growth by 0.3 percentage points this year to 1.4%, and by 0.1 percentage points for 2026 to 1.2%, underscoring the challenge for the chancellor, Rachel Reeves, before next week’s spring statement.
...
Cutting its global growth forecast for this year from 3.3% to 3.1%, it said that significant risks still remained. The global economy grew by 3.2% in 2024.
...
It said Mexico would be pushed into a deep recession this year – with output shrinking by 1.3% in 2025 and 0.6% in 2026 – and almost halved its forecasts for growth in Canada.
It reduced its US growth forecasts from 2.5% to 2.2% for this year and from 2.1% to 1.6% in 2026. Growth in China is projected to slow from 4.8% this year to 4.4% in 2026.
...
In a scenario in which 10% blanket tariffs were imposed on all US imports – a threat Trump made on the campaign trail before last November’s election – with a matched response from all trading partners, it said global output could fall by 0.3% within three years relative to its current forecast. The US would be hit significantly, with output declining by 0.7% by the third year and inflation rising by an average 0.7 percentage points a year.
Read more: https://www.theguardian.com/business/2025/mar/17/donald-trump-trade-wars-global-growth-inflation-oecd-uk-tariffs
OK, it's the bleedin' obvious, but the OECD is putting well-researched figures on it.
= new reply since forum marked as read
