OECD revises global economic growth forecast for 2024 upwards to 2.9 percent


(MENAFN) The Organization for Economic Cooperation and Development (OECD) has revised its global economic growth forecast for 2024 upwards to 2.9 percent, up from its previous projection of 2.7 percent in November. This adjustment follows a 3.1 percent growth in the previous year, with inflation declining more rapidly than anticipated, as highlighted in the Paris-based organization's February Interim Economic Outlook report.

The global GDP growth is expected to accelerate further in 2025, reaching 3 percent, thanks to improved financial conditions, consistent with previous forecasts.

The OECD has raised the US economic growth forecast by 0.6 percentage points to 2.1 percent for 2024, driven by robust household spending and favorable labor market conditions, while keeping it unchanged at 1.7 percent for 2025.

In the Eurozone, GDP growth is forecasted to be 0.6 percent this year and 1.3 percent next year, lower than previously estimated by 0.3 percentage points and 0.2 percentage points, respectively, due to constraints on credit availability in the near term.

China's growth forecast remains steady at 4.7 percent in 2024 and 4.2 percent in 2025, attributed to subdued consumer demand, high debt levels, and a weak property market.

Turkey's GDP is projected to grow by 2.9 percent in 2024 and 3.2 percent in 2025. Although the growth forecast for 2024 remains unchanged, it has been slightly lowered by 0.1 percentage points to 3.1 percent for 2025.

The OECD predicts that inflation will return to target levels in most G20 countries by the end of next year, with headline figures dropping from 6.6 percent this year to 3.8 percent in 2025. Core inflation in G20 advanced economies is expected to ease to 2.5 percent this year and 2.1 percent next year.

However, the OECD cautioned that growth might be weaker than expected if the lingering effects from past policy rate hikes prove to be stronger than anticipated.

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