OECD trade rebound threatened by return of protectionism
Global growth otherwise seen stable at 3.3 in 20252036
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PARIS, Dec 4 Reuters The world economy is set for steady growth in the next two years if resurgent protectionism does not derail a recovery in global trade, the Organisation for Economic Cooperation and Development said on Wednesday.

The world economy is poised to grow 3.2 this year and 3.3 in 2025 and 2026 as lower inflation, job growth and interest rate cuts help offset fiscal tightening in some countries, the OECD said in its latest Economic Outlook.

Its latest forecasts were largely in line with its last review dating from September, when it had expected growth of 3.2 this and next year and did not yet have a forecast for 2026.

After global trade sputtered last year, it is rebounding and growth in volumes is set to reach 3.6 next year despite a growing number of measures to restrict the flow of imports, the OECD said.

Rising trade tensions and further moves towards protectionism might disrupt supply chains, raise consumer prices, and negatively impact growth, the OECD said.

The outlook for global trade has become clouded since U.S. Presidentelect Donald Trump has stepped up calls for tariff hikes on various major trade partners.

As a cooling job market causes consumer spending to moderate, the OECD forecast that U.S. growth would ease from 2.8 this year to 2.4 in 2025 and 2.1 in 2026….