{"id":447434,"date":"2025-09-24T03:48:17","date_gmt":"2025-09-24T03:48:17","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/447434\/"},"modified":"2025-09-24T03:48:17","modified_gmt":"2025-09-24T03:48:17","slug":"u-s-economy-is-holding-up-better-than-expected-oecd-says","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/447434\/","title":{"rendered":"U.S. economy is holding up better than expected, OECD says"},"content":{"rendered":"<p>The American economy is holding up better than expected amid President Trump\u2019s trade war, according to the Organization for Economic Cooperation and Development.<\/p>\n<p>In its\u00a0<a class=\"externallink\" target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.oecd.org\/en\/publications\/oecd-economic-outlook-interim-report-september-2025_67b10c01-en.html\">quarterly report<\/a>, the OECD lifted its growth forecast for the U.S. to 1.8% for the year, but also warned that next year could be a different story.\u00a0<\/p>\n<p>With this small upward revision, the OECD is\u00a0still\u00a0forecasting a sharp slowdown in U.S. growth compared to last year.\u00a0But it\u2019s painting a picture\u00a0of a sturdier economy than expected.\u00a0<\/p>\n<p>\u201c(Particularly) given everything that\u2019s happened and everything that\u2019s changing and everything that\u2019s been introduced,\u201d said Monica de Bolle, a senior fellow with the Peterson Institute for International Economics.<\/p>\n<p>In other words, <a title=\"\" class=\"interallink\" href=\"https:\/\/www.marketplace.org\/story\/2025\/04\/02\/tariff-timeline-what-is-the-status-of-the-trump-administrations-tariffs\" target=\"_blank\" rel=\"noopener\">tariff and trade war uncertainty<\/a>, like how\u00a0high\u00a0the President will raise tariff rates and how long they\u2019ll stick around.<\/p>\n<p>\u201cThat uncertainty on its own is enough to bounce the economy off the rails. Though not immediately,\u201d de Bolle said.<\/p>\n<p>In the short term, that uncertainty might actually be\u00a0buffering\u00a0the U.S. economy, said Dietrich Vollrath, an economist at the University of Houston.<\/p>\n<p>While corporate America waits for clarity, it\u2019s mostly absorbing the cost of tariffs rather than passing them along.\u00a0<\/p>\n<p>\u201cThat\u2019s where the resilience may be fragile,\u201d Vollrath said.<\/p>\n<p><a title=\"\" class=\"interallink\" href=\"https:\/\/www.marketplace.org\/story\/2025\/09\/22\/why-can-companies-keep-raising-prices-in-this-economy\" target=\"_blank\" rel=\"noopener\">The deferral on price hikes can\u2019t last<\/a>, he said. Plus, while companies are in this holding pattern, \u201cit also means you\u2019re probably not building the new plant. Or you\u2019re not expanding your product lines because you\u2019re not sure whether that will be facing tariffs or not,\u201d he said.<\/p>\n<p>The OECD predicts the U.S. economy will lose steam a lot\u00a0faster\u00a0in 2026.\u00a0But\u00a0Daron Acemoglu,\u00a0an economist at MIT, said some tariff effects might take even longer to play out.<\/p>\n<p>\u201cEffects on investment, which companies survive, which companies can expand, who is willing to take risks, what type of talent gets attracted to the right sectors, those are all slow moving things,\u201d he said.<\/p>\n<p>Acemoglu said the U.S. will feel the true and full impacts in longer-term economic growth.\u00a0<\/p>\n<p>Related Topics<\/p>\n","protected":false},"excerpt":{"rendered":"The American economy is holding up better than expected amid President Trump\u2019s trade war, according to the Organization&hellip;\n","protected":false},"author":2,"featured_media":447435,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5311],"tags":[6228,150761,150762,49,978,659],"class_list":{"0":"post-447434","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-economic-uncertainty","9":"tag-organization-for-economic-cooperation-and-development-oecd","10":"tag-u-s-economic-growth","11":"tag-united-states","12":"tag-us","13":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115257232856336627","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/447434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=447434"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/447434\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/447435"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=447434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=447434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=447434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}