OECD warns member nations about widening fiscal deficits heading into 2026

A new OECD macroeconomic briefing highlights that fiscal deficits across several advanced economies have widened faster than projected due to slower tax inflows and rising social expenditure. Policymakers in Europe and North America are reviewing options to rebalance budgets without undermining growth expectations. Economists say that higher borrowing costs have increased pressure on governments to moderate new spending commitments.