OECD area raises global economic growth forecast for 2024 from 3.1 percent to 3.2 percent
Date
9/25/2024 9:47:35 AM
(MENAFN) The Organization for Economic Co-Operation and Development (OECD) has raised its global economic growth forecast from 3.1 percent to 3.2 percent, according to its latest Economic Outlook Interim Report. The OECD noted that global output has remained resilient in the face of various challenges, while inflation has continued to ease in many major economies. The report highlighted robust growth across several G20 nations, including the United States, Brazil, India, Indonesia, and the United Kingdom. However, some economies have struggled, with Germany's performance remaining weak and Argentina experiencing a contraction in output.
The OECD now expects the collective G20 economies to grow by 3.2 percent, marking a 0.1 percentage point increase from its previous estimate. Growth projections for the euro area, however, remain unchanged at 0.7 percent for the year. Among the eurozone's major economies, GDP growth expectations for France, Spain, and Italy have been revised upwards, while Germany's growth outlook was slightly downgraded to 0.1 percent, a decrease of 0.1 percentage points compared to the OECD's earlier forecast in May. This divergence within Europe reflects varying national economic circumstances and policy responses.
The report also provided a grim outlook for Argentina, forecasting a 4 percent contraction in its economy in 2024. Japan, the only other G20 country expected to see a contraction, is projected to shrink by 0.1 percent. In contrast, the OECD predicted more favorable outcomes for other major economies, including the United States, which is expected to grow by 2.6 percent, and the United Kingdom, which is forecasted to expand by 1.1 percent. The Russian economy, buoyed by various factors, is anticipated to grow by 3.7 percent in 2024, reflecting stronger-than-expected performance.
For Türkiye, the OECD has slightly downgraded its growth forecast to 3.2 percent, a reduction of 0.2 percentage points from its earlier May projection. Despite this adjustment, Türkiye's economy is still expected to perform solidly within the G20 framework. Looking ahead to 2025, the OECD kept its global economic growth forecast steady at 3.2 percent, with no G20 countries currently projected to experience economic contractions that year. The overall outlook suggests a mix of resilience and vulnerability among the world's major economies as they navigate a complex global environment.
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