The leading economic organization cut its forecast for global growth due to trade tensions sparked by Donald Trump's tariffs. It warned that conditions could worsen.Global growth is expected to slow due to "trade barriers" and "increased geopolitical and policy uncertainty," the Organisation for Economic Co-operation and Development (OECD) said Monday.

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Growth is projected to slow to 3.1% in 2025 and 3.0% in 2026, with the Paris-based policy forum lowering its projections from 3.3% for both this year and next. The projections were based primarily on weaker expected growth in the United States and the eurozone.

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"Increasing trade restrictions will contribute to higher costs for both production and consumption. It remains essential to ensure a well-functioning, rules-based international trading system and to keep markets open," OECD Secretary-General Mathias Cormann said.

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(The above story first appeared on LatestLY on Mar 17, 2025 04:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).