The Organization for Economic Cooperation and Development expects global growth to slow down.

The latest forecasts from the Organization for Economic Cooperation and Development show a decline in economic growth for the United States and the world, due to the continued impact of the trade policies pursued by President Donald Trump's administration, along with other factors increasing uncertainty in global markets.

The organization has lowered its growth expectations for the United States to 1.6% for the current year and 1.5% for 2026, down from its previous report in March which projected a growth of 2.2% for 2025.

On a global level, the organization expects a decrease in the Gross Domestic Product growth rate from 3.3% in 2024 to 2.9% over the current and next years.

The report explains that this slowdown is based on the assumption that tariff levels as of mid-May will remain in place, despite ongoing legal challenges, whereas previous expectations indicated global growth of 3.1% in 2025 and 3% in 2026.

The organization attributed this decline to the continued rise of trade barriers due to reciprocal trade policies, as well as tightening financial conditions and declining confidence among investors and consumers.

The organization also pointed out the impact of demographic factors, such as slowing immigration rates and the contraction of the federal workforce in the United States.

The report warned that "global prospects are becoming more challenging," considering that the continuation of these factors will have a "tangible negative impact on growth prospects."

Inflation forecasts have seen significant adjustments, with the organization predicting a decrease in the inflation rate in the G20 countries to 3.6% in 2025 compared to the March forecast of 3.8%.

Conversely, it raised its inflation forecast for the United States from 2.8% to 3.2%, with a possibility of nearing 4% by the end of next year.

The impact of tariffs on inflation is still debated among experts, as some monetary policymakers believe their effects are unclear and depend on the reactions of other countries.

This report comes at a time when global markets are experiencing increasing disruptions due to recent changes in trade policies, including Trump administration plans to raise steel import tariffs to 50%, as well as legal fluctuations regarding retaliatory tariffs between the United States and its trading partners.