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Global economy set for weakest growth since Covid, OECD warns

Organisation slashes forecasts and says US will be hit particularly hard

The global economy is heading into its weakest growth spell since the Covid-19 slump as President Donald Trump’s trade war saps momentum in leading economies including the US, OECD forecasts showed. 

The organisation on Tuesday slashed its outlook for global output and the majority of the G20 leading economies as it warned that agreements to ease trade barriers would be “instrumental” in reviving investment and avoiding higher prices.

Global growth is expected to be 2.9 per cent in 2025 and 2026, the OECD said in its latest full outlook. The figure has exceeded 3 per cent every year since 2020, when output plunged because of the pandemic.

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