OECD projects global economic slowdown through 2027

The OECD has released its Interim Economic Outlook report, revising global growth projections downward. The organization expects global GDP to grow by 2.9% in 2026, compared to 3.4% in 2025, and by 3% in 2027.

This deceleration is attributed to international volatility caused by geopolitical conflicts, specifically in the Middle East, and extreme weather events. However, investments in artificial intelligence data centers and semiconductor exports are helping to offset energy shocks and support foreign trade.

In its Tax Policy Reforms 2026 report, the OECD also notes a trend among member countries toward lowering corporate taxes to stimulate growth. While some governments have implemented specific sector taxes or increased revenue through limited tax hikes on products like tobacco, many have prioritized growth through specific incentives rather than broad tax increases.