The Organisation for Economic Co-operation and Development (OECD) delivered a sobering economic outlook on Tuesday, revising its 2025 global growth forecast downward to 2.9% – a 0.2 percentage point cut from its March projection. The Paris-based body cited escalating trade barriers and geopolitical uncertainties as key threats to recovery, with the United States facing particularly sharp adjustments.
Global growth is now expected to remain "subdued through 2025," according to the report, with U.S. expansion projected at 1.6% – significantly below previous estimates of 2.2%. Analysts suggest this reflects the cumulative impact of tariff disputes and supply chain realignments affecting major economies.
While the OECD report focuses on global trends, Asian markets remain a critical watchpoint for investors. The organization's warning about trade fragmentation comes as multiple Asian economies navigate shifting export demands and regional integration efforts. Business leaders are advised to monitor policy responses from China and other manufacturing hubs that could influence supply chain resilience.
For developing Asian nations, the forecast underscores the importance of domestic consumption growth and intra-regional trade partnerships. Academics note that digital economy investments and green energy transitions may help offset slower global demand in key sectors.
