According to the OECD, the global economy will grow by 3.2 percent, which is better than previous estimates. America's growth rate forecast has also been increased ...read more
Global economy will grow at 3.2 percent despite Trump tariffs.
Digital Desk, New Delhi. Despite US President Donald Trump's trade war, the global economy has shown surprising strength. The Organization for Economic Co-operation and Development (OECD) said on Tuesday that the global economy will grow at a rate of 3.2 percent this year.
However, this is slightly lower than the 3.3 percent growth in 2024 but better than the 2.9 percent growth forecast made in June. The organization has expected a growth of 2.9 percent in the global economy in the next year i.e. 2026.
OECD also gave forecast of America's growth rate
OECD has increased its forecast for America's growth rate to two percent in 2025. The US economy was estimated to grow by 1.6 percent in June. Despite this improvement, the US economy will grow much slower this year than the 2.8 percent growth rate in 2024.
The organization says that after becoming President in January, Trump has changed America's trade policy and has tried to become protectionist by imposing taxes on imports. Trade barriers were widely expected to slow growth and raise costs. Trade barriers were expected to slow growth and increase costs. But he imposed lower tariffs than he had initially threatened.
America's economy is getting a boost due to big investment in AI
Many companies imported foreign goods into America even before the new rates came into effect to avoid higher taxes. Also, large investments in Artificial Intelligence (AI) are boosting the economy of America and the world.
OECD Secretary-General Matthias Karmon says the global economy has shown strength this year despite high trade barriers and significant policy uncertainty. Higher tariffs will gradually translate into higher prices, which will reduce growth in domestic consumption and business investment. OECD has expected the growth rate of China and India to be five and 6.7 percent respectively this year.
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