OECD Reports Resilience in Global Economy This Year

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

“Industrial production and trade were supported by front-loading ahead of higher tariffs,” the OECD noted. “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 raised its global growth projection for 2025 to 3.2%, up from the prior estimate of 2.9%. Despite this upgrade, global expansion is still expected to slow down from 3.3% in 2024.

The forecast for 2026 remains steady at 2.9%, as the report explained: “front-loading ceases and higher tariff rates and still-high policy uncertainty dampen investment and trade.”

The OECD warned that several downside risks persist, including elevated trade barriers, geopolitical tensions, and ongoing policy uncertainty.

For the United States, GDP growth is predicted to decelerate to 1.8% in 2025 and 1.5% in 2026 amid tariff increases and declining immigration.

Growth in the Eurozone is forecast at 1.2% for 2025 and 1% for 2026, challenged by mounting trade frictions and geopolitical instability.

China’s economy is projected to cool to 4.9% in 2025 and further to 4.4% in 2026, pressured by tariff hikes and fading fiscal support.

Inflation in most G20 countries is expected to moderate significantly, with headline inflation dropping to an average of 3.4% in 2025 and 2.9% in 2026 as economic growth slows and labor market pressures ease.

Türkiye’s economic growth outlook was upgraded to 3.2% for 2025, rising from the earlier forecast of 2.9%.

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