OECD upgrades global GDP growth forecast for 2025

“The global economy is expected to remain resilient despite significant challenges,”

the OECD said.

According to the report’s authors, core inflation has returned to central bank targets in nearly half of advanced economies and about 60 percent of emerging economies. Average inflation in OECD countries is set to slow from 5.4 percent this year to 3.8 percent next year and to 3 percent by 2026.

“Labor markets are gradually weakening, but unemployment remains low by historical standards. Strong nominal wage growth and a continuing disinflationary trend are supporting real household incomes. At the same time, consumer spending growth remains subdued in most countries, reflecting weak consumer confidence. World trade is picking up, with growth expected to reach 3.6 percent this year,”

the OECD said.

The OECD has revised its forecast for US GDP growth this year to 2.8 percent from 2.6 percent and next year to 2.4 percent from 1.6 percent. The Paris-based organization said US economic growth will slow to 2.1 percent in 2026.

The eurozone economy is expected to grow by 0.8 percent this year, instead of the previously estimated 0.7 percent, with GDP growth accelerating to 1.3 percent next year and 1.5 percent in 2026.