FX.co ★ OECD Sees Global Growth Cooling Through 2026

The Organisation for Economic Co-operation and Development (OECD) anticipates a deceleration in global growth, reducing from 3.2% in 2025 to 2.9% in 2026, followed by a moderate recovery to 3.1% in 2027. This forecast accounts for the impacts of tariffs, sluggish trade activities, and geopolitical uncertainties. In the United States, growth is predicted to decline to 2.0% in 2025, further slowing to 1.7% in 2026, before a minor uplift to 1.9% in 2027 due to softer employment increases and fiscal constraints. China is expected to expand by 5% this year, with growth tapering to approximately 4.4% to 4.3% in 2026 and 2027, as consumption remains lackluster and the real estate sector continues to contract. In the Euro Area, a modest growth of around 1.3% is anticipated for 2025, dipping slightly to 1.2% in 2026 and climbing to 1.4% in 2027, supported by a gradual improvement in domestic demand. Growth in the UK is projected to decelerate from 1.4% in 2025 to 1.2% in 2026, with a marginal recovery to 1.3% in 2027, partially influenced by fiscal consolidation strategies. Japan is expected to register a growth rate of 1.3% in 2025, slowing to 0.9% annually over 2026-27, predominantly due to weaker external demand.