The global economy is bracing for a significant downturn, and Canada is unfortunately poised to be among the hardest hit, according to a recent warning from the OECD (Organisation for Economic Co-operation and Development).

This isn’t the first time the OECD has revised its economic outlook this year. Their latest forecast paints a concerning picture, predicting a global GDP decrease from 3.3 percent in 2024 to 2.9 percent for both 2025 and 2026. This projection hinges on the assumption that the tariffs imposed by the US remain in effect, regardless of ongoing legal challenges.

The OECD report highlights a concentrated slowdown affecting the United States, Canada, and Mexico, while China and other global economies are anticipated to experience less severe negative adjustments. The persistence of these tariffs is expected to significantly impact Canada’s economic performance in the coming years.

This sobering prediction underscores the interconnected nature of the global economy and the significant ripple effects of protectionist trade policies. Experts are closely monitoring the situation and analyzing potential mitigation strategies to lessen the impact on Canada.