Peterson Institute for International Economics
October 9, 2025
Abstract
The global economy is growing more strongly than expected this year, despite rising trade tensions and high uncertainty around US economic policy. Optimism about artificial intelligence (AI), particularly in the United States, has offset some of the drag from these factors for now. Still, growth is expected to slow across most major economies in 2026.
Citation
Dynan, Karen. "Global growth holds up despite policy headwinds and rising risks." Peterson Institute for International Economics (October 9, 2025).