OECD warns tariffs, AI will test resilience of the global economy

Al JazeeraCenterEN 2 min read 100% complete by By ReutersDecember 2, 2025 at 08:40 PM

AI Summary

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In December 2025, the OECD reported that global growth is holding steady, with a projected slowdown from 3.2% in 2025 to 2.9% in 2026, before rebounding to 3.1% in 2027. The organization, based in Paris, attributes this to an AI investment boom offsetting the impact of US tariff hikes implemented by President Trump. While the effects of the tariffs have been relatively mild so far, the OECD warns of potential risks from escalating trade tensions and over-optimism regarding AI. The US economy is expected to grow 2% in 2025, slowing to 1.7% in 2026, supported by AI investment and fiscal policy. The OECD cautioned that current US fiscal policy is unsustainable due to large deficits and rising debt.

Key Entities & Roles

Key Player Opposition Context

Artificial Intelligence ×250% United States ×460% OECD ×370% Donald Trump ×480%

Keywords

global economy 90% tariffs 80% artificial intelligence 70% economic growth 70% fiscal policy 60% oecd 60% trade tensions 50% stock market correction 40% budget deficits 40%