Overview

• The OECD cut its global GDP growth forecast to 2.9% for both 2025 and 2026, down from 3.3% in 2024.
• The United States is projected to slow to 1.6% growth in 2025 and 1.5% in 2026, and China’s expansion is expected to moderate to 4.7% and 4.3% over the same period.
• The eurozone is forecast to strengthen modestly to 1.0% in 2025 and 1.2% in 2026, while Italy’s GDP is seen at 0.6% next year rising to 0.7% in 2026.
• The OECD highlighted trade barriers, tighter financial conditions, declining confidence and political uncertainty as major headwinds to the outlook.
• European stock markets reacted negatively, with Paris and Frankfurt slipping about 0.15% and Milan down 0.5% on the growth downgrade.