The Paris-based organization predicts the global economy will expand by 3.1% this year and 3.2% in 2025.
The Organization for Economic Co-operation and Development (OECD) has raised its outlook for the global economy on the back of better-than-expected growth in the United States and China.
The Paris-based group said Thursday that the global economy is expected to grow by 3.1% this year and 3.2% in 2025.
The revised outlook compares with February’s forecast of 2.9% in 2024 and 3% next year.
“Although growth remains modest, there are some signs that the global outlook is starting to brighten. The impact of tightening financial conditions continues, particularly in housing and credit markets, but global economic activity remains “The economy remains relatively resilient, inflation is falling faster than initially expected, and private sector confidence is now improving,” the intergovernmental body said.
The OECD said the pace of economic recovery varied widely across countries, with “slow results in Europe and most low-income countries offset by strong growth in the United States and many large emerging market economies.” Ta.
Among major countries, the US growth rate was expected to be 2.6% this year and 1.8% in 2025, up from 2.1% and 1.7%, respectively.
China, the world’s second-largest economy, is expected to grow by 4.9% in 2024 and 4.5% next year, up from 4.7% and 4.2%, respectively.
Eurozone growth was expected to be 0.7% this year and 1.5% in 2025, up from 0.6% and 1.3% respectively.
The UK’s outlook has been revised down, with growth expected to reach 0.4% this year and 1% in 2025, down 0.3% and 0.2% respectively.
The OECD said risks were becoming “more balanced” but “substantial uncertainties” including tensions in the Middle East continued to cloud the global outlook.
“High geopolitical tensions remain a significant short-term adverse risk, particularly in the Middle East, where evolving conflicts could escalate and disrupt energy and financial markets, drive up inflation and dampen growth,” the report said. In some cases, yes.”