A report released by the Organization of Petroleum Exporting Countries (OPEC) on Wednesday projected global economic growth of 2.9% for 2025, downgrading its previous month's prediction of 3.0%, buoyed by "the contraction in the US economy in 1Q25 and the continued uncertainties regarding trade, partially offset by the additional support measures across key economies."
The organization indicates that "the global economy continues to demonstrate a steady growth trend despite recent tariff-related developments." The US economy is expected to expand by 1.7% this year and reach 2.1% in 2026, down from the previously foreseen 2.1% and 2.2%, respectively.
Further, the Eurozone's growth forecast was adjusted upward to 1% for 2025, while holding steady at 1.1% for 2026. China's economy is anticipated to grow by 4.6% in 2025 and 4.5% in 2026 as "the recently announced agreement between the US and China to substantially reduce tariffs over the next 90 days represents a significant step toward easing tensions between the two economies." Global economic growth for 2026 is estimated at 3.1%, unchanged from the previous forecast.
