Global economies including Canada are stable, but the definitions weighing: OECD – National

A new report finds that, despite the negative effects of customs tariff policies all over the world, including in Canada, global economies are still expected – unless definitions are escalating to worse.

Delay Economic expectations Through the Organization for Economic Cooperation and Development, an international government organization that includes 38 member states shows that even with the tariffs of definitions creates great challenges to economies around the world, most of them are still better than expected.

“Global growth has proven to be more flexible than expected in the first half of 2025, especially in many emerging markets as well as the United States,” the report says.

“While the complete effect of tariffs still reveals, signs of early effects are visible on consumer behavior, labor markets and prices.”

In March, US President Donald Trump sparked a trade war by Imposing a tariff on almost all countriesIncluding Canada.

Talks are underway Review the CusMA Trade Agreement in Canada (CusMA) Next year, with the announcement of both the United States and Canada public consultations earlier this month.

The existing tariffs lead to high costs of some goods and services, which led to companies to make difficult decisions.

some According to what was reported, the companies were “absorbing” some increases So as not to have to raise customer rates, but this also means losing possible profits. In other cases, companies were forced to control or stop expansion plans and diversify their supply chains to navigate the definitions they would have to pay.

Small companies in particular are at risk of closing Permanently due to the definitions.

The labor market in Canada is also displayed with The high national unemployment rate exceeds seven percent in AugustAnd Consumers have also reduced their spending.

These effects of trade war were not seen not only in Canada but also in many other countries, according to the Economic Cooperation and Development Organization report.

The report said: “The softening of the labor markets, with high unemployment rates and less job openings in some economies, while inflation has stopped in many economies with high food prices, the inflation of services has been constant.”

The economies are still expected to grow in the coming months until next year – albeit modest.

The OECD Economic product report expects the world level, and is measured by GDP by 3.2 percent by the end of this year, and this compares to the previous expectation by 2.9 percent of growth.

For 2026, the Organization for Economic Cooperation and Development says it is still expected to increase global growth by 2.9 percent as the full impact of definitions is revealed.

GDP is a scale of the total amount of all goods and services produced in a certain period, which is an essential way to see if it is Economy is in a stagnation A long period of weakness in the economy.

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GDP in Canada appears some signs of slow growth, with GDP in June determines a third monthly decrease in a row, a total of 0.3 percent, The GDP report is presented in July on September 26.

The Economic Cooperation and Development Organization report says that by the end of this year, the GDP in Canada will grow by one percent, and compare with an increase of 1.5 percent in 2024.

In 2026, the organization expects the GDP in Canada to rise by 1.1 percent for the full year.

On September 17, Canada Bank has delivered the first interest reduction since MarchHe cited the “weakest economy” amid the trade war as a sign that the time has come to reduce borrowing costs.

“Bank of Canada) published three Canadian economy scenarios: one depends on the current definitions, another with the escalation of definitions, and another with the cancellation of the escalation. If you take the current tariff scenario, a tariff scenario.

“The growth was clearly negative in the second quarter, we expect growth somewhere a percent in the second half of the year. This is slow growth. It will not feel satisfied. It is growth, but it is slow growth because the economy adapts to a different relationship with its biggest commercial partner.”

The Organization for Economic Cooperation and Development remains careful to warn that customs tariff policies “still reveal”, and urges that “the two countries must cooperate to reduce trade tensions and reduce commercial barriers while addressing economic security concerns.”

The Organization for Economic Cooperation and Development adds that the central banks, such as the Bank of Canada, need to “remain vigilant” in maintaining price stability by controlling interest rates as needed, and public debts must be reduced to help “maintain the ability to respond to future shocks.”

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