{"id":166752,"date":"2025-09-24T19:27:12","date_gmt":"2025-09-24T19:27:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/166752\/"},"modified":"2025-09-24T19:27:12","modified_gmt":"2025-09-24T19:27:12","slug":"global-economies-including-canada-are-stable-but-tariffs-weighing-oecd-national","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/166752\/","title":{"rendered":"Global economies including Canada are stable, but tariffs weighing: OECD – National"},"content":{"rendered":"

A new report finds that despite the negative impacts of tariff policies worldwide so far, including in Canada, global economies are still expected to grow \u2014 unless tariffs escalate for the worse.<\/p>\n

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The latest economic outlook<\/a> by the Organization for Economic Co-operation and Development, an intergovernmental organization with 38 member countries, shows that even as tariffs are creating significant challenges for economies worldwide, most are still performing better than expected.<\/p>\n

\u201cGlobal growth proved more resilient than expected in the first half of 2025, especially in many emerging markets but also the United States,\u201d the report says.<\/p>\n

\u201cWhile the full impact of tariff increases is still unfolding, early signs of effects are visible in consumer behaviour, labour markets and prices.\u201d<\/p>\n

In March, United States President Donald Trump sparked a trade war<\/a> by\u00a0imposing tariffs on almost all countries<\/a>, including Canada.<\/p>\n

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Talks are underway towards reviewing the Canada-United States-Mexico trade agreement (CUSMA)<\/a>\u00a0next year, with both the U.S. and Canada announcing public consultations earlier this month.<\/p>\n

Tariffs that are currently in place have been leading to higher costs for some goods and services, which has led businesses to make difficult decisions.<\/p>\n

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSurvey shows small businesses buckling under the pressure of tariffs\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

Some businesses have reportedly been \u201cabsorbing\u201d some of the increases<\/a> so as to not have to raise prices for customers, but this has also meant losing potential profits. In other instances, businesses have had to adjust or halt expansion plans and diversify their supply chains to navigate around tariffs they would otherwise have to pay.<\/p>\n

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Small businesses in particular are at higher risk of closing<\/a> permanently because of tariffs.<\/p>\n

Canada\u2019s labour market has also been getting hit, with the national unemployment rate rising above seven per cent in August<\/a>, and consumers have also been reducing their spending<\/a>.<\/p>\n

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These effects from the trade war have been seen not only in Canada but also in many other countries, according to the report from the OECD.<\/p>\n

\u201cLabour markets are softening, with higher unemployment and fewer job openings in some economies, while disinflation has stalled in many economies as food prices rose and services inflation remained persistent,\u201d the report said.<\/p>\n

Economies are still expected to grow in the coming months and into next year \u2014 albeit modestly.<\/p>\n

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The OECD report expects economic output globally, measured by gross domestic product, to rise 3.2 per cent by the end of this year, and that compares with a previous expectation of 2.9 per cent growth.<\/p>\n

For 2026, the OECD says global growth is still expected to rise 2.9 per cent as the full effect of tariffs unfolds.<\/p>\n

GDP is the measure of a nation\u2019s total sum of all goods and services produced in a given period, and is a key way to tell if an economy is in a recession<\/a> \u2014 an extended period of weakness in an economy.<\/p>\n

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Canada\u2019s GDP has been showing some signs of slower growth, with June\u2019s GDP marking a third straight monthly decline, totalling 0.3 per cent,<\/a>\u00a0and July\u2019s GDP report is due on Sept. 26.<\/p>\n

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The OECD report says that by the end of this year, Canada\u2019s GDP will grow by one per cent, and that compares with a 1.5 per cent increase in 2024.<\/p>\n

In 2026, the organization expects Canada\u2019s GDP to rise 1.1 per cent for the full year.<\/p>\n

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tU.S. Supreme Court to hear arguments on Trump tariffs on Nov. 5\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

On Sept. 17, the Bank of Canada delivered its first rate cut since March<\/a>, and cited the \u201cweaker economy\u201d amid the trade war as the signal that it was time to bring down borrowing costs.<\/p>\n

\u201c(The Bank of Canada) published three scenarios for the Canadian economy: one based on current tariffs, another one with an escalation of tariffs, and another with a de-escalation. If you take the current tariff scenario, which is roughly the tariff scenario we\u2019re still in, we\u2019re not expecting a recession,\u201d governor Tiff Macklem said to reporters after the announcement.<\/p>\n

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\u201cGrowth was clearly negative in the second quarter, we are expecting growth somewhere around one per cent in the second half of the year. So that is slow growth. It\u2019s not going to feel good. It is growth, but it\u2019s slow growth because the economy is adjusting to a different relationship with its biggest trading partner.\u201d<\/p>\n

The OECD is remaining cautious in warning that tariff policies are \u201cstill unfolding,\u201d and urging that \u201ccountries should co-operate to ease trade tensions and lower trade barriers while addressing economic security concerns.\u201d<\/p>\n

The OEC adds that central banks, like the Bank of Canada, need to \u201cremain vigilant\u201d in maintaining price stability by adjusting interest rates as needed, and public debt must be minimized to help \u201cpreserve the capacity to respond to future shocks.\u201d<\/p>\n

\n\t\t&copy 2025 Global News, a division of Corus Entertainment Inc.\t<\/p>\n","protected":false},"excerpt":{"rendered":"A new report finds that despite the negative impacts of tariff policies worldwide so far, including in Canada,…\n","protected":false},"author":2,"featured_media":166753,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,85992,1849,8334,46,52800,3608,3275],"class_list":["post-166752","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-canada-economy","tag-consumer","tag-donald-trump-tariffs","tag-economy","tag-oecd","tag-recession","tag-world"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/166752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=166752"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/166752\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/166753"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=166752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=166752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=166752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}