The world economy will take a significant hit over the next 18 months-and tariffs are a major culprit, according to newly released forecasting from the Organization for Economic Cooperation and Development (OECD).

The Organization for Economic Cooperation and Development revised down its 2025 growth forecasts for the U.S. and world economy, cutting its estimates to 2.9% and 1.6%, respectively.

The slowdown is most pronounced in advanced economies such as the United States, which is projected to grow at only 1.6% in 2025, down from 2.8% in 2024. India, by contrast, continues to defy the global slowdown.