Latest news with #globaldownturn
Daily Mail
03-06-2025
- Business
- Daily Mail
US is heading for a sharp economic downturn, OECD warns
Donald Trump's aggressive trade policies have sent the global economy into a downturn, the Organization for Economic Co-operation and Development has warned. The US economy will be among the hardest hit with growth slowing from 2.8 percent in 2004 to just 1.6 percent this year, according to the group's new forecasts. The Paris-based organization also predicted on Tuesday that Trump's tariffs will hit the global economy harder than expected, slashing its growth forecast for the year down to 2.9 percent compared to 3.3 percent last year. If consumer price expectations become de-anchored the Fed could even be forced to raise rates again, the report warned. 'Weakened economic prospects will be felt around the world, with almost no exception,' OECD chief economist Alvaro Pereira said in the report. Uncertainty from the rapidly changing policies is also hitting consumer confidence and holding back investment, according to the report. The Economic Outlook report said that besides the US the slowdown will be concentrated in Canada, Mexico and China, countries hardest hit by Trump's tariffs. The OECD has called on governments to ease trade tensions and work to eliminate uncertainty. 'Agreements to ease trade tensions and lower tariffs and other trade barriers will be instrumental to revive growth and investment and avoid rising prices,' the OECD said. 'This is by far the most important policy priority.' The report comes as its members, including US trade representative Jamieson Greer, prepare to meet in Paris for their annual meeting. The OECD also criticized other key Trump policies including his vast reductions in the federal workforce and curbs on immigration, both of which are also dragging on the economy.
Bloomberg
31-05-2025
- Business
- Bloomberg
Confidence Among UK Directors Rebounds to Pre-Budget High
UK business confidence has recovered to levels last seen before Labour's budget in October as investment intentions pick up but lingering fears of a global downturn continue to weigh on sentiment, according to the Institute of Directors. The business group's survey of 483 directors showed optimism returning despite the £26 billion payroll tax that came into force last month and ongoing trade uncertainty. But IOD Chief Economist Anna Leach urged the government to stick to tough spending plans at next week's review to avoid more damaging tax hikes.
