By Admin 
Due to Donald Trump’s tariff policies and global uncertainties, the speed of the US and the world economy has been braked. The Economic Cooperation and Development Organization (OECD) in its latest report has cut the growth rate of Global Economy, including the US.
America’s growth decreased from 2.2 per cent to 1.6 per cent
According to OECD, the US economy will now grow at a rate of only 1.6 per cent in 2025, while in March 2025 it was 2.2 per cent. For 2026, this rate has been reduced to 1.5 percent. The report states that business policies in the US, strict immigration rules, cuts in the number of government employees and tariffs have a direct impact on investment and consumption.
Global growth also downgrade
OECD has also reduced the global economic growth rate. Now global growth is estimated to be 2.9 percent for both 2025 and 2026 years, which was 3.1 percent and 3 percent earlier. This decline is especially seen in the US, Canada and Mexico. There is a relatively mild effect in the rest of the countries.
“Tariff policy became the reason for economic uncertainty”
The report said that the new tariffs, consumers and business sectors, implemented in the US since May 2025, are weakening the confidence. Recently some tariff rules were stopped in the US court, but they were restored again. The Trump administration is now planning to increase the tariff to 50 per cent on steel.
OECD Chief Economist Alvaro Perera said in an interview to CNBC, “Almost every country had to decrease the growth of every country because uncertainty about trade and policies has now reached a historical level.”
Inflation will also increase
Not only growth, now inflation is also emerging as a big threat. According to OECD, inflation in the US can be 3.2 percent in 2025, which was earlier 2.8 percent estimated. By the end of the year, this figure can reach 4 percent. The main reason for this is the increase in the cost of goods due to tariff on imports. However, to some extent, the decline in commodity prices can provide relief.
There is a ray of hope in technology
In this disappointing economic scenario, technology is being seen as a possible positive factor. OECD believes that areas like AI, Robotics and Quantum Computing in the US are progressing rapidly. Alvaro Perera believes that this can boom in productivity, but it is necessary that the world countries should reduce trade war and return the trust of investor.
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