OECD Raises Global Growth Forecast

(MENAFN) The global economy has demonstrated greater resilience than expected during the first half of the year, the Organization for Economic Co-operation and Development (OECD) stated on Tuesday.

According to the report, “Industrial production and trade were supported by front-loading ahead of higher tariffs.”

It added that “Strong AI-related investment boosted outcomes in the United States, and fiscal support in China outweighed the drag from trade headwinds and property market weakness.”

In its revised outlook, the OECD has increased its global growth projection for 2025 to 3.2%, up from the previous estimate of 2.9%.

Despite this stronger forecast, global growth is still anticipated to moderate from 3.3% in 2024.

The organization left its 2026 outlook unchanged at 2.9%, noting that “front-loading ceases and higher tariff rates and still-high policy uncertainty dampen investment and trade.”

The OECD also warned that downside risks persist, citing factors such as heightened trade barriers, geopolitical tensions, and ongoing policy uncertainty.

For the United States, GDP growth is expected to decelerate to 1.8% in 2025 and 1.5% in 2026 as tariff hikes take effect and immigration declines.

Meanwhile, Eurozone growth is forecast to be 1.2% in 2025 and 1% in 2026, amid increasing trade frictions and geopolitical uncertainty.

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