Despite a trade war, the world economy is forecast to grow 3.2% this year, OECD says

The OECD has revised its global economic outlook, predicting 3.2% growth this year, a slight decrease from 2024 but better than previous forecasts. Despite trade wars, the world economy has shown unexpected resilience. The U.S. economic growth forecast has also been raised to 2% for this year, though still slower than last year. Trump's trade policies, including tariffs, were anticipated to hinder growth and increase costs. However, tariffs were lower than expected, and companies preempted them through early imports. Investment in artificial intelligence is also contributing to economic growth. The OECD anticipates that rising tariffs will eventually lead to higher prices, impacting consumption and investment. China's economy is projected to grow by 5% this year, consistent with 2024. The Eurozone is expected to see a modest growth of 1.3% in 2025, an increase from the previous year. India is predicted to be the fastest-growing major economy, with a growth rate of 6.7% this year.