The Organisation for Economic Co-operation and Development (OECD) has revised its global economic outlook, predicting growth of 3.1 percent this year and 3.2 percent in 2025. This upgrade is attributed to stronger growth in the United States and China. Despite modest growth, there are signs of improvement in the global economy, with falling inflation and improving private sector confidence. Recovery is uneven across countries, with weaker outcomes in Europe and low-income countries, while the US and many large emerging-market economies are experiencing strong growth.
Among major economies, the US is expected to grow by 2.6 percent this year and 1.8 percent in 2025, up from previous projections of 2.1 percent and 1.7 percent, respectively. China is forecasted to expand by 4.9 percent in 2024 and 4.5 percent in 2025, compared to earlier predictions of 4.7 percent and 4.2 percent. The eurozone is projected to see 0.7 percent growth this year and 1.5 percent growth in 2025, up from 0.6 percent and 1.3 percent. However, the United Kingdom’s outlook has been downgraded, with growth expected to reach 0.4 percent this year and 1 percent in 2025.
Despite some positive developments, the OECD warns of continued uncertainty in the global outlook. High geopolitical tensions, particularly in the Middle East, pose a significant risk to near-term growth. If conflicts intensify and disrupt energy and financial markets, inflation could rise and growth could be reduced. It is important to monitor these risks and work towards achieving a more balanced economic environment.
Overall, the global economy is showing signs of improvement, with stronger growth in the US and China driving the revised outlook by the OECD. While recovery remains modest, falling inflation and improving private sector confidence are positive indicators. However, uncertainty persists, especially with tensions in the Middle East posing a significant risk to near-term growth. It will be important to address these uncertainties and work towards achieving a more balanced global economic environment.
In conclusion, the OECD has upgraded its global economic outlook, predicting growth of 3.1 percent this year and 3.2 percent in 2025. The US and China are driving this growth, while Europe and low-income countries are experiencing softer outcomes. While signs of improvement are present, continued uncertainty, especially in the Middle East, remains a concern. Monitoring and addressing these risks will be crucial in ensuring the global economy continues on a path of growth and stability.
