The U.S. and global economies are set to slow next year as higher tariffs take full effect, but could grow more strongly than expected if the AI investment boom “broadens,” the Organization for Economic Cooperation and Development said.
In a quarterly report on Tuesday, the Paris-based research body forecast the U.S. economy will grow 2% this year and 1.7% next year, having expanded by 2.8% in 2024. In September, the OECD projected growth of 1.8% this year and 1.5% in 2026. It sees the world’s largest economy regaining momentum in 2027, with growth of 1.9%.
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