Global growth is holding up better than expected as an artificial intelligence (AI) investment boom helps offset some of the shock from United States tariff hikes, according to the Organisation for Economic Co-operation and Development (OECD).

The Paris-based organisation, however, warned on Tuesday that global growth was vulnerable to any new outbreak of trade tensions, while investor optimism about AI could trigger a stock market correction if expectations are not met.

In its Economic Outlook, the OECD forecast global growth would slow modestly from 3.2 percent in 2025 to 2.9 percent in 2026, leaving its forecasts untouched from its last estimates in September. It predicted a rebound to 3.1 percent in 2027.

OECD head Mathias Cormann said the trade shocks triggered by US President Dona

See Full Page