Global economic growth prospects have been diminished, according to the Organisation for Economic Co-operation and Development (OECD), as a consequence of ongoing trade disputes.

Cloudy Economic Forecast: OECD Warns of Global Growth Threats

Global economic expansion forecasts reduced over escalating trade disputes - Global economic growth prospects have been diminished, according to the Organisation for Economic Co-operation and Development (OECD), as a consequence of ongoing trade disputes.

Hey there! Let's talk about the latest economic outlook from the Organization for Economic Cooperation and Development (OECD). They're painting a less-than-bright picture due to angst-ridden trade relationships and dormant confidence.

The OECD isn't mincing words: "Global economic growth is facing a darkening horizon," they said. Spotlighting the culprits as trade barriers, cash-strapped financial conditions, evaporating trust, heightened political anxieties, OECD claims these elements could slow down growth significantly.

Let's see how this might play out for the major economic heavyweights:

• Germany is expected to inch up from 0.4% economic expansion this year to 1.2% by 2026.
• In contrast, the U.S.A., historically the poster child for robust growth, has its economic growth projected at just 1.6% in 2025, a big drop from the previously anticipated 2.2%. The next year, 2026, isn't looking much better either, with a 1.5% GDP forecast.

History might repeat itself, as Donald Trump again takes aim at trade practices. Trump, our 45th president, has been aggressively pushing for hardline trade policies since the beginning of his second term and has disrupted global markets and supply chains during his tenure. On Truth Social, his online platform, he boasted that tariffs are the driving force behind our booming economy before the release of the OECD report.

Here's what's happening in the global arena: A ministerial meeting of the OECD Council is taking place in the City of Lights—Paris—on Tuesday and Wednesday. Moreover, Germany's Federal Minister of Economics, Katherina Reiche, and representatives from the U.S. and European Union will likely discuss tariffs on the sidelines of the event.

Secretary-General Mathias Cormann of the OECD urged governments to work cooperatively to sort out global trade issues positively and constructively through dialogue, ensuring markets remain open and the economic blessings of rule-based global trade are preserved.

Now, let's delve deeper into the prediction game:

• The U.S. has growth forecasts of 2.8% in 2024, slowing to 1.6% in 2025, and 1.5% in 2026 due to tariffs, immigration decline, federal workforce reduction, and policy uncertainty.
• Canada and Mexico, not immune to the trade tensions, might see reduced growth with respective drops of 1.5% to 1% in 2025 and 1.5% to 0.4% in 2026.
• China, despite encountering the heaviest U.S. tariffs, maintains relatively higher growth projected at 5% in 2024, slipping to 4.7% in 2025, and further down to 4.3% in 2026.

Remember, these stats should be taken with a grain of salt. We're looking at various external factors, such as inflation, slowdowns, and financial market fluctuations that could sway the picture. So, keep your eyes on the prize... or more accurately, on the world economy! 😉😉

1. The Organization for Economic Cooperation and Development (OECD) encouraged policymakers to exchange information and cooperate on global trade issues, aiming to keep markets open and preserve the blessings of rule-based global trade.
2. Amidst the cloudy economic forecast, the European Coal and Steel Community (ECSC), which marked the beginning of European integration, serves as a reminder of the importance of collaboration and information exchange in times of economic uncertainty.
3. In light of the OECD's warning about threats to global growth, understanding the nuances of finance, investing, business, policy-and-legislation, politics, and general news becomes crucial for individuals and businesses alike, as they navigate through this uncertain economic landscape.

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