The OECD sharply reduces its economic growth forecast for the G20

International economic and political fears and uncertainties are affecting advanced economies. The OECD lowered its G20 GDP growth forecast for 2025 to 3.1% from 3.3% and for 2026 to 2.9% from 3.2%, citing higher trade barriers and political uncertainty holding back investment and spending.

The U.S. economy is now expected to grow 2.2% in 2025 (up from 2.4% estimated in December) and 1.6% in 2026 (up from 2.1%).

Canada's growth outlook has been sharply reduced to 0.7% for both years (from 2%), while Mexico is now expected to contract by 1.3% in 2025 and 0.6% in 2026, reversing previous growth forecasts.

In Europe, the Eurozone is expected to grow by 1.0% in 2025 (from 1.3%) and 1.2% in 2026 (from 1.5%), with a downward revision for Germany, France and Italy partially offset by an upward revision for Spain, which is proving to be the European locomotive.

The UK growth forecast has also been cut to 1.4% in 2025 (up from 1.7%) and 1.2% in 2026 (up from 1.3%). Meanwhile, China's economy is expected to expand 4.8% this year (up from 4.7%) before slowing to 4.4% in 2026.

Here is the graph with the forecast data

Economic uncertainty and the slowdown in financial markets are impacting global economic forecasts. The transition from a system of complete free trade, or almost so, to a system of tariff balance and reciprocal tariffs will not be simple, and could lead to even strong fluctuations in the wealth of some G20 countries.

This will be a complex transition period, which will have economic and social repercussions.

The article THE OECD sharply reduces economic growth forecasts for the G20 comes from Economic Scenarios .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-ocse-riduce-fortemente-le-previsioni-di-crescita-economica-per-il-g20/ on Mon, 17 Mar 2025 16:52:03 +0000.