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

The organization warns that President Donald Trump has set US fiscal policy on an unsustainable course.

Global growth is holding up better than expected as a boom in investment in artificial intelligence (AI) helps offset some of the shock from U.S. tariff hikes, according to the Organization for Economic Co-operation and Development (OECD).

However, the Paris-based organization warned on Tuesday that global growth was vulnerable to any new outbreak of trade tensions, while investor optimism about AI could trigger a stock market correction if expectations are not met.

In its economic outlook, the OECD forecast global growth would slow slightly from 3.2 percent in 2025 to 2.9 percent in 2026, with its forecasts unchanged from its latest estimates in September. A recovery to 3.1 percent was forecast for 2027.

OECD chief Mathias Cormann said the trade shocks…