OECD Warns of Economic Slowdown Linked to Trump's Trade Policies

Global growth forecasts have been downgraded as trade tensions escalate, with significant impacts on the UK, US, Canada, and Mexico.

The OECD has reduced its global growth forecast for 2025 to 3.1%, down from 3.3%, citing rising trade barriers and geopolitical uncertainty.
The UK’s growth projections were lowered to 1.4% in 2025 and 1.2% in 2026, with inflation expected to remain above the Bank of England’s 2% target.
Donald Trump's sweeping tariffs, including a 25% tax on imports from Canada and Mexico, are driving economic disruptions, with Mexico predicted to enter a recession and Canada’s growth halving to 0.7%.
The US economy also faces slower growth, with forecasts cut to 2.2% in 2025 and 1.6% in 2026, alongside heightened inflation concerns.
Chancellor Rachel Reeves acknowledged global challenges while emphasizing the UK’s resilience, noting it is expected to remain Europe’s fastest-growing G7 economy.