Economy

OECD Raises 2025 Global Growth Forecast Amid Tariff and Policy Uncertainties

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By Eason Chen/Ai Chi 

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Global economic growth is expected to slow down this year, but not by as much as first thought. The Organization for Economic Cooperation and Development has updated its global growth forecast tto 3.2% for 2025, while keeping next year’s steady at 2.9%.

GLOBAL ECONOMIC GROWTH

 

OECD: Growth persists despite tariffs and uncertainty

 

REPORTER:  

The Organization for Economic Cooperation and Development, or OECD, has raised its global economic growth forecast to 3.2 percent this year while keeping next year’s steady at 2.9 percent.  

The 2025 forecast is 0.3 percentage points up from its previous report as the impact of US tariffs gradually filters through global markets.

 

The full effects of these tariffs will become clearer as firms run down the inventories that built up in response to tariff announcements and as the higher tariff rates continue to be implemented.

 

REPORTER:  

The US in April unleashed sweeping tariffs on goods from countries around the world, and while the impact is still unfolding, the US is grappling to maintain stability. The Fed announced a rate cut earlier in September and is warning of rising unemployment risks.  

Recent data show that the pace of economic growth has moderated. The unemployment rate is low but has edged up. Job gains have slowed, and the downside risks to employment have risen. At the same time, inflation has risen recently and remains somewhat elevated.

 

REPORTER:  

In Taiwan, strong investments in AI continue to drive the economy. Export orders in August jumped nearly 20% marking the 7th month in a row of growth, partly because companies rushed to ship goods before tariffs hit.

 

REPORTER:  

Taiwan's exports could face pressure this year as U.S. President Donald Trump moves ahead with a 20% tariff, but some analysts say current investment means overall growth won’t be hit too hard.

 

From a long-term perspective  

including the second half of this year  

and further into the future  

I don’t think Taiwan’s economic growth  

will experience any significant downturn.  

It should generally maintain a fairly strong trend.

 

REPORTER:  

As Taiwan continues to negotiate its final tariff rate with the US, it’s not just Taipei but capitals around the world watching closely to see how tariffs reshape the global economy.

 

Eason Chen and Ai Chi for TaiwanPlus