The Organisation for Economic Co-operation and Development (OECD) in Paris has revised its predictions for global economic growth. It now expects a 3.1 percent expansion this year and a 3.2 percent growth in 2025, thanks to the stronger-than-expected growth in the United States and China.
In its latest forecast, the OECD highlighted that global economic activity is on the rise, although growth remains moderate. Despite tighter monetary conditions, which continue to affect areas such as housing and credit markets, global activity is proving relatively resilient, with falling inflation rates and increasing confidence in the private sector.
The pace of economic recovery varies across different countries, with Europe and many low-income countries experiencing slower growth compared to strong performances in the United States and several large emerging-market economies. Among major economies, the US is expected to grow by 2.6 percent this year and 1.8 percent in 2025, while China is projected to expand by 4.9 percent and 4.5 percent, respectively.
The eurozone is forecasted to achieve 0.7 percent growth this year and 1.5 percent growth in 2025, while the United Kingdom’s outlook has been downgraded to 0.4 percent growth this year and 1 percent growth in 2025 due to ongoing geopolitical tensions in the Middle East that could disrupt energy and financial markets leading to increased inflation reduced growth uncertainty remains substantial despite these improvements.
The OECD warns of “substantial uncertainty” that continues to cloud the global outlook due to ongoing geopolitical tensions particularly in the middle east which could disrupt energy financial markets leading increased inflation reduced
