The OECD improved its global growth forecast for this year

By: Trademagazin Date: 2024. 09. 26. 10:07

The Paris-based Organization for Economic Co-operation and Development (OECD) slightly improved its global growth forecast for this year in its forecast released on Wednesday compared to its previous estimate in May, while leaving the forecast for next year unchanged.

According to the document published on the OECD website, after the 3.1 percent achieved in 2023, the global GDP growth will be 3.2 percent this year instead of the 3.1 percent forecast in May, and then the world economy will also expand by 3.2 percent in 2025.

In addition to further disinflation and improved real incomes, the less strict monetary policy in many countries also supports the growth of demand.

The OECD improved this year’s growth rate of the G20 from 3.1 percent in May to 3.2 percent, while an unchanged 3.1 percent expansion is forecast for 2025; the center of gravity of global growth shifts to emerging regions.

According to the OECD’s forecast, India will achieve the fastest growth rate: India’s economy may expand by 6.7 percent this year and 6.8 percent next year. In its May forecast, the OECD expected a 6.6 percent GDP growth in India for both 2024 and 2025.

In second place in the ranking is Indonesia, with GDP growth of 5.1 percent this year and 5.2 percent next year. The economy of China, which is in third place, may expand by 4.9 percent this year and 4.5 percent in 2025, in line with the May forecast.

The Paris-based organization still expects the US economy to expand by 2.6 percent this year, but lowered its GDP growth forecast for 2025 from 1.8 percent to 1.6 percent.