euronews.com
OECD Forecasts 2.9% Global GDP Growth in 2025 Amidst Rising Trade Pressures
The OECD forecasts a 2.9% global GDP growth in 2025, down from 3.3% in 2024, mainly due to rising trade pressures, lagging consumer confidence, tighter financial conditions, and increased policy uncertainty, particularly concerning US tariffs; this impacts the mining sector and fuels inflation.
- What is the OECD's forecast for global GDP growth in 2025, and what are the primary contributing factors to this projection?
- The OECD forecasts a global GDP slowdown to 2.9% in 2025 from 3.3% in 2024, primarily due to rising trade pressures, low consumer confidence, and tighter financial conditions. This represents a downward revision from their previous projection of 3.1%. The decreased growth is expected to negatively impact the mining sector.
- Which countries are expected to experience the lowest and highest economic growth in 2025, and what factors contribute to these variations?
- Increased policy uncertainty, particularly US tariffs, significantly impacts the global economy and fuels inflation. Countries like Italy, Norway, and France anticipate slower growth, while Costa Rica and Ireland expect stronger performance. The reduced growth forecast reflects concerns about reduced commodity demand, potentially lowering metal and mineral prices.
- What policy recommendations does the OECD offer to mitigate the projected economic slowdown and promote sustainable growth in the coming years?
- The OECD's recommendations to policymakers include reducing trade barriers, improving supply chains, and implementing shared regulatory standards to boost economic growth. Central banks should focus on disinflation while cautiously easing interest rates where inflation is declining. Reducing policy uncertainty through competition-boosting policies is also crucial.
Cognitive Concepts
Framing Bias
The framing is largely neutral, presenting the OECD's forecast objectively. The inclusion of Russ Mould's quote provides a different perspective but doesn't significantly skew the overall narrative. The headline, if any, would significantly influence the framing; without it, the analysis is limited.
Language Bias
The language used is largely neutral and objective, employing precise economic terminology. The inclusion of the quote from Russ Mould adds a slightly more informal tone, but it remains relatively unbiased.
Bias by Omission
The article focuses primarily on OECD predictions and doesn't explore alternative economic forecasts or perspectives from other organizations. While it mentions the impact of US tariffs, it doesn't delve into the specifics of those tariffs or the counterarguments against them. Omitting these could limit the reader's ability to form a complete picture.
Sustainable Development Goals
The OECD's revised forecast predicts slower global GDP growth in 2025 and 2026, indicating a potential slowdown in economic activity and potentially impacting job creation and income levels. Increased trade pressures, policy uncertainty, and tighter financial conditions all negatively affect economic growth and employment opportunities.