Latest news with #Cormann
Hans India
2 days ago
- Business
- Hans India
Indian economy beats global slowdown: OECD
New Delhi: India continues to defy the global slowdown, the OECD's latest 'Economic Outlook' said on Tuesday, projecting the country's economy to grow by 6.3 per cent in 2025 and 6.4 per cent in 2026. Strong domestic demand, resilient services and manufacturing sectors, and ongoing infrastructure investments have been cited as key drivers for India's strong performance amid global uncertainties. The report also cautioned that external risks — particularly from global trade frictions — could spill over into export-heavy segments. China, on the other hand, is losing steam. Its growth is projected to moderate from 5.0 per cent in 2024 to 4.7 per cent in 2025 and 4.3 per cent in 2026. The Outlook projects global growth slowing from 3.3 per cent in 2024 to 2.9 per cent in both 2025 and 2026. 'The slowdown is expected to be most concentrated in the United States, Canada, Mexico and China, with smaller downward adjustments in other economies,' it noted. Inflationary pressures have resurfaced in some economies. Higher trade costs in countries raising tariffs are expected to push inflation up further, although the impact will be partially offset by weaker commodity headline inflation in the G20 economies is collectively expected to moderate from 6.2 per cent to 3.6 per cent in 2025 and 3.2 per cent in 2026. 'The global economy has shifted from a period of resilient growth and declining inflation to a more uncertain path,' OECD Secretary-General Mathias Cormann said in a statement. 'Governments need to engage with each other to address any issues in the global trading system positively and constructively through dialogue – keeping markets open and preserving the economic benefits of rules-based global trade for competition, innovation, productivity, efficiency and ultimately growth,' Cormann emphasised. On the upside, a reversal of new trade barriers would boost global growth prospects and reduce inflation. A peaceful resolution to Russia's war against Ukraine and of ongoing conflicts in the Middle East could also improve confidence and incentives to invest.
Business Recorder
3 days ago
- Business
- Business Recorder
OECD lowers global outlook
PARIS: Global economic growth is slowing more than expected only a few months ago as the fallout from the Trump administration's trade war takes a bigger toll on the US economy, the OECD said on Tuesday, revising down its outlook. The global economy is on course to slow from 3.3% last year to 2.9% in 2025 and 2026, the Organisation for Economic Cooperation and Development said, trimming its estimates from March for growth of 3.1% this year and 3.0% next year. But the growth outlook would likely be even weaker if protectionism increases, further fuelling inflation, disrupting supply chains and rattling financial markets, the Paris-based organisation said in its latest Economic Outlook. 'Additional increases in trade barriers or prolonged policy uncertainty would further lower growth prospects and likely push inflation higher in countries imposing tariffs,' OECD Secretary General Mathias Cormann said as he presented the report. If Washington raised bilateral tariffs by an additional 10 percentage points on all countries as compared with the rates in force as of mid-May, global economic output would be about 0.3% lower after two years, Cormann added. 'The key policy priorities in this context are constructive dialogue to ensure a lasting resolution to current trade tensions,' Cormann said. US President Donald Trump's tariff announcements since he took office in January have already roiled financial markets and fuelled global economic uncertainty, forcing him to walk back some of his initial stances. Last month, the US and China agreed to a temporary truce to scale back tariffs, while Trump also postponed 50% duties on the European Union until July 9. The OECD forecast the US economy would grow only 1.6% this year and 1.5% next year, assuming for the purpose of making calculations that tariffs in place mid-May would remain so through the rest of 2025 and 2026. For 2025, the new forecast marked a sizeable cut as the organisation had previously expected the world's biggest economy would grow 2.2% this year and 1.6% next year. While new tariffs may create incentives to manufacture in the United States, higher import prices would squeeze consumers' purchasing power and economic policy uncertainty would hold back corporate investment, the OECD warned. Meanwhile, the higher tariff receipts would only partly offset revenues lost due to the extension of the 2017 Tax Cuts and Jobs Act, new tax cuts and weaker economic growth, it added. Trump's sweeping tax cut and spending bill was expected to push the US budget deficit to 8% of economic output by 2026, among the biggest fiscal shortfalls for a developed economy not at war. As tariffs fuel inflation pressures, the Federal Reserve was seen keeping rates on hold through this year and then cutting the fed funds rate to 3.25-3.5% by the end of 2026. In China, the fallout from the US tariff hikes would be partly offset by government subsidies for a trade-in programme on consumer goods like mobile phones and appliances and increased welfare transfers, the OECD said.
Time of India
3 days ago
- Business
- Time of India
India's economy may grow 6.3% in FY26, 6.4% next fiscal: OECD
NEW DELHI: India's economy is projected to grow by 6.3% in 2025-26 and 6.4% in 2026-27, the Organisation for Economic Cooperation and Development (OECD) said on Tuesday. It forecast global growth to slow to 2.9% in 2025 and 2026 due to substantial barriers to trade, tighter financial conditions, diminishing confidence, and heightened policy uncertainty. The projections by the Paris-based organisation showed that India will remain the fastest-growing economy among the G20 countries against the backdrop of global uncertainties. For India, the OECD trimmed the forecasts marginally. It said private consumption in India is supported by rising real incomes and lower personal income taxes. Investment will remain strong, bolstered by easing financial conditions. However, export growth is expected to moderate due to weaker global demand, the impact of higher tariffs, and heightened trade policy uncertainty. It stated that high merchandise export exposure to the US, which is India's largest export market, increases the vulnerability of private investment to shifts in trade policy. "Tariff increases and broader trade tensions may dampen investor sentiment, particularly in export-oriented sectors such as chemicals, textiles, and electronics. However, the overall GDP effects will be limited by the moderate share of exports in GDP, with merchandise exports towards the US accounting for only 2.1% of GDP," according to the OECD report. GDP growth in the US is projected to decline from 2.8% in 2024 to 1.6% in 2025 and 1.5% in 2026. In the euro area, growth is projected to strengthen modestly from 0.8% in 2024 to 1% in 2025 and 1.2% in 2026. China's growth is projected to moderate from 5% in 2024 to 4.7% in 2025 and 4.3% in 2026. "The global economy has shifted from a period of resilient growth and declining inflation to a more uncertain path," OECD secretary-general Mathias Cormann said. "Govts need to engage with each other to address any issues in the global trading system positively and constructively through dialogue," said Cormann. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Indian Express
3 days ago
- Business
- Indian Express
OECD lowers global outlook as Trump trade war hits US growth
Global economic growth is slowing more than expected only a few months ago as the fallout from the Trump administration's trade war takes a bigger toll on the U.S. economy, the OECD said on Tuesday, revising down its outlook. The global economy is on course to slow from 3.3% last year to 2.9% in 2025 and 2026, the Organisation for Economic Cooperation and Development said, trimming its estimates from March for growth of 3.1% this year and 3.0% next year. But the growth outlook would likely be even weaker if protectionism increases, further fuelling inflation, disrupting supply chains and rattling financial markets, the Paris-based organisation said in its latest Economic Outlook. 'Additional increases in trade barriers or prolonged policy uncertainty would further lower growth prospects and likely push inflation higher in countries imposing tariffs,' OECD Secretary General Mathias Cormann said as he presented the report. If Washington raised bilateral tariffs by an additional 10 percentage points on all countries as compared with the rates in force as of mid-May, global economic output would be about 0.3% lower after two years, Cormann added. 'The key policy priorities in this context are constructive dialogue to ensure a lasting resolution to current trade tensions,' Cormann said. U.S. President Donald Trump's tariff announcements since he took office in January have already roiled financial markets and fuelled global economic uncertainty, forcing him to walk back some of his initial stances. Last month, the U.S. and China agreed to a temporary truce to scale back tariffs, while Trump also postponed 50% duties on the European Union until July 9. The OECD forecast the U.S. economy would grow only 1.6% this year and 1.5% next year, assuming for the purpose of making calculations that tariffs in place mid-May would remain so through the rest of 2025 and 2026. For 2025, the new forecast marked a sizeable cut as the organisation had previously expected the world's biggest economy would grow 2.2% this year and 1.6% next year. While new tariffs may create incentives to manufacture in the United States, higher import prices would squeeze consumers' purchasing power and economic policy uncertainty would hold back corporate investment, the OECD warned. Meanwhile, the higher tariff receipts would only partly offset revenues lost due to the extension of the 2017 Tax Cuts and Jobs Act, new tax cuts and weaker economic growth, it added. Trump's sweeping tax cut and spending bill was expected to push the U.S. budget deficit to 8% of economic output by 2026, among the biggest fiscal shortfalls for a developed economy not at war. As tariffs fuel inflation pressures, the Federal Reserve was seen keeping rates on hold through this year and then cutting the fed funds rate to 3.25-3.5% by the end of 2026. In China, the fallout from the U.S. tariff hikes would be partly offset by government subsidies for a trade-in programme on consumer goods like mobile phones and appliances and increased welfare transfers, the OECD said. It estimated the world's second-biggest economy, which is not an OECD member, would grow 4.7% this year and 4.3% in 2026, little changed from previous forecasts for 4.8% in 2025 and 4.4% in 2026. The outlook for the euro area was unchanged from March with growth forecast this year at 1.0% and 1.2% next year, boosted by resilient labour markets and interest rate cuts while more public spending from Germany would buoy 2026 growth.
Yahoo
06-05-2025
- Business
- Yahoo
OECD Secretary General says Ukraine made significant progress in fighting corruption
Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Generate Key Takeaways Mathias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development (OECD), says that Ukraine has made significant progress in fighting corruption. Source: Cormann at the presentation of the OECD's review of Ukraine on Tuesday in Kyiv, European Pravda reports, citing Interfax-Ukraine Quote: "We are impressed by how publicly and openly the government approaches these tasks, despite the aggressive war. You have made significant progress in the fight against corruption, and I can say that the integrity system is very important for the community to trust you, for business to trust you, and this will help to rebuild the country after the war." Details: He noted that the OECD hopes the fight against corruption will continue. He also emphasised that all indicators of public integrity are submitted by the Ukrainian government, which confirms that Ukraine genuinely wants to build institutions that demonstrate the commitment of not only the leadership, but also the entire nation to combat corruption. "In certain key areas, you have almost reached the OECD average," said Cormann. Meanwhile, he said that the system of state audit and corruption risk management should be strengthened. The OECD Secretary-General also stressed that the lobbying register should be launched as soon as possible and must be accessible to all. "Overall, Ukraine has reduced its corruption risks. It is conducting further training and retraining of its specialists... This also applies to the private sector, but it should also apply to small and medium-sized businesses, so that they also play their role in the fight against corruption. So, we will continue to build with you a strong foundation for our further work in the fight against corruption in order to ensure the successful implementation of all the measures we are talking about," said Cormann Background: Olha Stefanishyna, Ukraine's Deputy Prime Minister for European and Euro-Atlantic Integration, believes that Ukraine will be able to open at least one negotiating cluster before the end of Poland's presidency of the EU Council. Ukraine and the EU Commission initially had ambitious plans for the pace of accession talks in 2025, but the process has been hindered by Hungary's veto. Recently, there have been indications that Moldova and Ukraine could be separated on their path to EU membership. Support Ukrainska Pravda on Patreon!
