OECD further improves forecast for global GDP growth this year

The OECD revised its forecast for global GDP growth to 3.2 percent from 2.9 percent expected in June, and kept it at 2.9 percent for next year. However, overall, it is expected to slow down compared to last year’s 3.3 percent, as higher tariffs and ongoing political uncertainty slow investment and trade, it wrote.

The Paris-based organization expects US economic growth to slow to 1.8 percent this year and 1.5 percent next year, after expanding 2.8 percent last year. Inflation in the United States is expected to accelerate from 2.5 percent last year to 2.7 percent this year and 3 percent next year.

The OECD has revised up its forecast for eurozone economic growth this year by 0.2 percentage points to 1.2 percent, and cut it by the same amount to 1 percent for next year. Eurozone inflation is expected to slow from 2.4 percent last year to 2.1 percent this year and 1.9 percent next year.

The report’s authors have also revised down their forecasts for German GDP growth this year and next year by 0.1 percentage points to 0.3 percent and 1.1 percent, respectively. Last year, German GDP shrank by 0.5 percent.

According to the OECD’s new forecast, Japan’s economy will grow by 1.1 percent and 0.5 percent this year and next, respectively, after expanding by 0.1 percent last year, compared to the previously estimated 0.7 percent and 0.4 percent.