The latest interim Economic Outlook from the Organisation for Economic Co-operation and Development (OECD) reveals a more optimistic picture for the global economy than many had anticipated. As of September 2025, many economies have surprised analysts by holding up better than expected against headwinds like inflation, trade tensions, and tariff pressures.

The OECD now projects global growth of 3.2% for 2025, up from its previous 2.9% forecast made in June. Meanwhile, growth in 2026 is expected to be about 2.9%, unchanged from earlier outlooks.

In the United States, the forecast has also been nudged higher. U.S. GDP growth is expected to be around 1.8% in 2025, up from an earlier estimate of 1.6%. However, the slow-down is projected to continue into 2026, when growth will moderate to about 1.5%.

China remains one of the brighter spots: its growth is expected to reach 4.9% in 2025, though it is projected to ease to about 4.4% next year. Meanwhile, economies in the euro zone will experience modest expansion, helped by resilience in certain sectors but constrained by policy uncertainties and inflation.

Still, risks loom. The OECD warns that the full effects of U.S. tariffs are yet to be felt, and that trade uncertainty, inflationary pressures, and tighter financial conditions could dent momentum.

Overall, the revised forecasts suggest that although growth is slowing compared to the post-pandemic rebound, many economies are doing better than expected under challenging global conditions. Policymakers will need to balance inflation control, tariff disputes, and investment incentives to sustain this resilience.