The Organization for Economic Co-operation and Development (OECD) has raised its growth forecast for the global economy as many countries appear more resilient than expected.
The OECD says it now expects global economic growth of 3.2% this year compared to 2.9% that had been previously forecast.
Expectations for global growth in 2026 remain unchanged at 2.9%.
Growth expectations for the U.S. economy were also raised to 1.8% for this year, up from a 1.6% growth projection previously.
The OECD forecasts 1.5% economic growth for the U.S. in 2026.
“Global growth was more resilient than anticipated in the first half of 2025, especially in many emerging-market economies,” writes the OECD in a report detailing its latest projections.
However, the Paris-based intergovernmental organization warned that “significant risks to the economic outlook remain” due to high levels of policy uncertainty and elevated trade tariffs.
The OECD notes that countries and regions around the world continue to face tariff rates as high as 50% on their exports to the U.S., with some still trying to negotiate trade deals.
“The overall effective US tariff rate rose to an estimated 19.5% at the end of August, the highest rate since 1933,” writes the OECD.
Additionally, labour markets around the world are showing signs of weakening as some countries see higher unemployment and fewer job openings.
The OECD says it now expects headline inflation to average 3.4% among G20 countries in 2025, slightly lower than the 3.6% it projected previously.
Inflation expectations for the U.S. were also revised down, with the OECD now forecasting that consumer prices will rise 2.7% in 2025, down from a previous forecast of 3.2%.
