### Global Economic Growth to Slow as US Tariffs Take Toll, Says OECD

Global economic growth is expected to decelerate this year, largely attributed to the tariffs imposed by the Trump administration, a prominent international policy group reports. The Organization for Economic Co-operation and Development (OECD) has revised its worldwide growth forecast to a modest 2.9%, down from an earlier projection of 3.1%. The OECD cited a "significant" increase in trade barriers and cautioned that the weakened economic outlook would have near-universal repercussions.

In its latest analysis, the OECD also slashed economic growth forecasts for several countries, including the UK and the US. For the UK, the expected growth for this year was adjusted down to 1.3% from the 1.4% predicted in March. The OECD warned that the UK's economic prospects are hampered not only by global trade tensions but also by domestic issues like substantial government debt interest payments and a thin financial buffer.

Chancellor Rachel Reeves recently announced £14bn in measures, including £4.8bn in welfare cuts, in an effort to maintain fiscal headroom. The OECD has suggested that the UK could strengthen its public finances through increased tax revenues, potentially by closing tax loopholes and re-assessing council tax bands based on current property values.

For the US, the OECD has downgraded its 2023 growth forecast from 2.2% to 1.6%, with further slowing anticipated in 2026. Despite President Trump's claims on social media that tariffs are boosting the economy, recent data shows a 0.2% annual rate contraction in the US economy in the first quarter, the first since 2022. Rising inflation also poses a risk, contrary to Trump's campaign promises.

OECD’s chief economist, Alvaro Pereira, remarked that almost every country is facing a downgrade in growth forecasts. "We'll have a lot less growth and job creation than we had forecasted in the past," Pereira told the BBC. The organization also noted that economic momentum is weakening in the UK, despite a better-than-expected growth of 0.7% between January and March.

Next week, Chancellor Reeves will present her Spending Review, facing the challenge of allocating departmental budgets amidst the economic slowdown. Prime Minister Mark Carney recently outlined a bold plan to position Canada as the "strongest economy in the G7." Meanwhile, discussions between US and Chinese officials about trade may take place this week, according to Trump administration sources.