Global Economy Braces for Tariff Shock Amid Growth Adjustments

The global economy is demonstrating resilience, though the full effect of the U.S. import tariffs has yet to be experienced, according to the OECD’s recent Economic Outlook Interim Report. While AI investments are currently bolstering U.S. activity, China’s economic slowdown is cushioned by fiscal support. Despite the threat of higher tariffs significantly impacting investment and trade growth, the OECD’s forecasters have updated their 2025 global economic growth prediction to a moderate decline of 3.2%, a slight dip from 3.3% last year. Expectations for 2026 remain at 2.9%, though uncertainties linger. The OECD anticipates key central banks maintaining loose monetary policies…