OECD Economic Outlook Report Released:
Global Economy Proves Resilient But Fragile
The Organisation for Economic Co-operation and Development (OECD) has announced the release of its latest report, “OECD Economic Outlook, Volume 2025 Issue 2.” The report finds that the global economy has been resilient this year, but underlying fragilities persist.
The OECD projects global growth to slow from 3.2% in 2025 to 2.9% in 2026, before picking up slightly to 3.1% in 2027.
Key Economic Projections from the Report:
- United States: GDP growth is projected to decline from 2.0% in 2025 to 1.7% in 2026.
- Euro Area: Growth is expected to be 1.3% in 2025, easing to 1.2% in 2026.
- China: Growth is projected to moderate from 5.0% in 2025 to 4.3% by 2027.
- Inflation: Annual headline inflation in G20 economies is expected to moderate from 3.4% this year to 2.9% in 2026 and 2.5% in 2027, projecting inflation to return to target in most major economies by mid-2027.
OECD Secretary-General Mathias Cormann stressed the need for constructive dialogue to ensure a lasting resolution to trade tensions and a reduction in policy uncertainty. He also emphasized the importance of fiscal discipline to address risks from high public debt and called for structural reforms such as reducing red tape and simplifying regulations to enhance competition and business dynamism.
The Outlook highlights risks including further increases in trade barriers, weaker-than-expected growth, and potential upside inflation surprises. Central banks should remain vigilant and continue policy rate reductions in economies where inflation is projected to moderate or remain subdued.
OECD Economic Outlook Report Released: Global Economy Proves Resilient But Fragile
OECD Economic Outlook Report Released:Global Economy Proves Resilient But Fragile The Organisation for Economic Co-operation…