GENERAL NEWS
A weakened global economic outlook
“ The global economy was more resilient than anticipated in the first half of 2025, but downside risks loom large as higher barriers to trade and geopolitical and policy uncertainty continue to weigh on activity in many economies,” commented the OECD in September. The OECD is a global policy forum.
The latest OECD Interim Economic Outlook projects global growth slowing from 3.3 % in 2024 to 3.2 % in 2025 and 2.9 % in 2026, as early stockpiles of goods accumulated in anticipation of higher tariffs are drawn down and as the implementation of tariffs and continuing policy uncertainty weigh on investment and trade.
“ GDP growth in the United States is projected to decline to 1.8 % in 2025 and 1.5 % in 2026. In the euro area, growth is expected to be 1.2 % in 2025 and 1.0 % in 2026. China’ s growth is projected to ease to 4.9 % in 2025 and 4.4 % in 2026,” said the OECD.
“ Inflation is projected to decline in most G20 economies as economic growth moderates and labour market pressures ease. Headline inflation is projected to decline from 3.4 % in
2025 to 2.9 % in 2026, with core inflation in G20 advanced economies remaining broadly stable at 2.6 % in 2025 and 2.5 % in 2026,” it continued.
“ The global economy has remained resilient, but the full effects of higher tariffs and policy uncertainty have yet to be felt. Global economic growth is projected to slow, and significant risks remain as well as concerns about fiscal sustainability and financial stability,” OECD Secretary-General, Mathias Cormann, added.
“ To strengthen economic growth prospects, a key priority is to ensure a lasting resolution to trade tensions. We recommend that governments engage productively with one another to make international trading arrangements fairer and function better, in a way that preserves the economic benefits of open markets and rules-based global trade.”
“ Stronger structural reform efforts will be key to durably improve living standards and realise the potential gains from new technologies such as AI,” OECD Chief Economist, Álvaro Santos Pereira, explained.
An OECD report in July highlighted that, although OECD job markets remain resilient, population ageing will cause significant labour shortages and fiscal pressures. There are signs of a slowdown as geopolitical and trade policy uncertainties dampen economic activity, according to the report.
“ Ambitious policy action is needed to improve job opportunities for older workers, unlock the untapped labour market potential of women and young people, and revive productivity growth, including by ensuring that workers have the right skills to benefit from new AI tools,” said Cormann.
The July report forecasts that the workingage population will decline by more than 30 % in a quarter of OECD countries by 2060. It proposes solutions such as promoting career mobility for mid-career and older workers, and fostering lifelong learning. Reviving productivity growth will also need to be part of the solution. n
www. oecd. org
Machine tools in a changing landscape
“ Despite regional differences, we share common goals: creating a better business environment, expanding global markets, tackling skills shortages and driving innovation through green and digital technologies,” highlighted François Duval, CECIMO’ s President, at CECIMO’ s press conference at EMO Hannover 2025 in Germany this September. CECIMO is the European Association of Manufacturing Technologies, bringing together 15 national associations of machine-tool builders.
Marcus Burton, Chairman of CECIMO’ s Economic Committee, presented key insights on the machine-tool market. He underlined how European machine-tool production decreased by 9.2 % to 25.1 billion euros in 2024 from 2023.
“ Recent projections estimate a further decline of around 8.6 % in 2025, compared to 2024. Because of this estimate, the world share of European machine tool production is predicted to drop to 31.5 % in 2025( compared to 34 % in 2024). Looking at consumption levels, CECIMO countries witnessed a 16 % decrease in consumption in 2024, and projections point to a further drop of around 3.6 % in 2025,” said CECIMO.
The order trend for CECIMO 8 countries has reflected economic challenges with the results for Q2 2025 showing a decrease of 2 % quarter-on-quarter. However, the CECIMO8 order index was 6 % YoY higher than in Q2 2024, based upon improving orders from overseas. Marcus Burton highlighted that“ even though the results for the last two years represent a negative outlook heavily impacted by geopolitical, trade and economic uncertainties, the year ahead( 2026) is expected to deliver stronger results driven by the anticipated increase in order and consumption levels”.
Kazuo Yuhara( President of Japan’ s Machine Tool Builders’ Association, JMTBA), pointed out that“ domestic demand decreased by 7.4 % compared to previous years and overseas demand increased by 3.4 %.” He confirmed that the production of metal-cutting machine tools shrank by 14.3 % from the previous year in 2024, accounting for around 901.3 billion yen. A decline in overall trade data was recorded for the import and export of metal-cutting machine tools. Export data was 8.3 % down from previous year, while import levels reduced by 11.5 % in 2024.
During his presentation, Douglas K. Woods( President of AMT – the Association for Manufacturing Technology in the USA), emphasised strong domestic consumption growth in 2024, compared to 2023( an expected increase of around 12 %). He stated that this surge is mainly driven by increased demand across aerospace, defence, the reshoring of influenced sectors and the impact of Foreign Direct Investment. Looking ahead to 2026, AMT expects a stable environment( even though a slight decline in orders is expected).
For the Indian machine-tool sector, Jibak Dasgupta( Director General / CEO of the Indian Machine Tool Manufacturers’ Association, IMTMA) described“ the remarkable growth of the Indian machine-tool industry with total consumption of US $ 3.7 billion in FY 2024- 25.” He also pointed out opportunities in India for international collaboration and investment. n
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8 | ismr. net | ISMR October 2025