Global economic outlook weakens as policy uncertainty weighs on demand – OECD

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The global economic outlook has dimmed as growing policy uncertainty continues to undermine demand, according to the latest report from the Organisation for Economic Co-operation and Development (OECD). Rising geopolitical tensions, trade disputes, and fluctuating fiscal policies are contributing to a more cautious market environment, prompting analysts to revise growth projections downward. The OECD’s assessment highlights the challenges facing economies worldwide as governments grapple with balancing stimulus measures and inflation control amid persistent uncertainties.

Global Economic Growth Slows Amid Rising Policy Uncertainty

Recent data highlights a marked deceleration in the pace of global economic expansion, primarily driven by escalating policy uncertainty across major economies. Businesses and consumers alike are exercising increased caution, postponing investments and discretionary spending as governments navigate complex geopolitical tensions and fluctuating regulatory landscapes. The ongoing unpredictability is dampening overall demand, with knock-on effects rippling through international trade and financial markets.

Key areas affected include:

  • Investment timing: Corporations delay capital projects amid unclear policy signals.
  • Consumer confidence: Households adopt more conservative spending habits.
  • Trade flows: Cross-border commerce slows due to tariff uncertainties and supply chain disruptions.
RegionGDP Growth 2024 (%)Policy Risk Level
North…

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Author : earthnews

Publish date : 2025-09-23 10:20:00

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