U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook

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📉 U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook As 2025 unfolds, the U.S. economy is showing signs of strain amid a global slowdown and heightened trade barriers. Here's a detailed look at the latest forecasts and implications based on insights from the OECD, Federal Reserve, and key market indicators . 📊 1. U.S. Growth Forecast Downgraded by OECD The Organisation for Economic Co-operation and Development (OECD) has revised the U.S. GDP growth forecast for 2025 to 1.6% , down from 2.8% in 2024 . The forecast for 2026 remains muted at 1.5% , reflecting persistent uncertainty driven by: Elevated trade barriers Reduced consumer spending power Sluggish business investment 💸 2. Tariffs Fueling Inflation & Trade Costs The average U.S. tariff rate has climbed to 15.4% , the highest level since 1938 . These tariffs have raised import costs, which are now being passed on to consumers: Projected consumer price inflation is expected to rise to...
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**India's Economic Strength**:

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Here are some of the latest economic updates:

- **India's Economic Strength**: The Reserve Bank of India (RBI) has highlighted India's resilience amid global uncertainties, calling it a "connector country" poised to play a key role in sectors like technology, digital services, and pharmaceuticals[43dcd9a7-70db-4a1f-b0ae-981daa162054](https://www.moneycontrol.com/news/business/india-emerging-as-connector-country-why-rbi-s-bulletin-says-economy-well-positioned-to-navigate-global-headwinds-13039951.html?citationMarker=43dcd9a7-70db-4a1f-b0ae-981daa162054 "1"). India's economy is expected to grow at the highest rate among major economies this year.

- **Morgan Stanley's Growth Forecast**: Morgan Stanley has revised India's growth outlook upwards, predicting a **6.2% growth for FY26** and **6.5% for FY27**, citing strong domestic demand and rising capital expenditure[43dcd9a7-70db-4a1f-b0ae-981daa162054](https://www.msn.com/en-in/money/markets/india-s-economic-momentum-intact-morgan-stanley-raises-indias-growth-outlook-for-fy26-fy27-on-rising-capex-domestic-demand/ar-AA1FbSUj?citationMarker=43dcd9a7-70db-4a1f-b0ae-981daa162054 "2").

- **China-Pakistan Economic Corridor Expansion**: China, Pakistan, and Afghanistan have agreed to expand the China-Pakistan Economic Corridor (CPEC) into Afghanistan, deepening trilateral cooperation[43dcd9a7-70db-4a1f-b0ae-981daa162054](https://www.indiatoday.in/world/story/china-pakistan-agree-with-taliban-to-expand-china-pakistan-economic-corridor-into-afghanistan-2728118-2025-05-21?citationMarker=43dcd9a7-70db-4a1f-b0ae-981daa162054 "3"). India has opposed this move due to its implications for regional stability[43dcd9a7-70db-4a1f-b0ae-981daa162054](https://www.news18.com/explainers/why-china-pakistan-economic-corridor-expansion-into-afghanistan-concerns-india-explained-9347661.html?citationMarker=43dcd9a7-70db-4a1f-b0ae-981daa162054 "4").

- **U.S. Economic Stress**: The American Psychological Association reports that economic shifts under the Trump administration are increasing workplace stress, with many workers fearing job losses due to policy changes[43dcd9a7-70db-4a1f-b0ae-981daa162054](https://www.newsweek.com/trump-economic-driving-worker-stress-2075934?citationMarker=43dcd9a7-70db-4a1f-b0ae-981daa162054 "5").

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