OECD Keeps Global Growth Steady, Cuts Next Year’s Outlook

(MENAFN) The Organization for Economic Cooperation and Development (OECD) on Thursday left its global growth projection for 2026 unchanged at 2.9%, but trimmed its 2027 forecast to 3%, citing escalating tensions in the Middle East that are pushing up energy prices and straining supply chains.

According to its interim Economic Outlook report, titled Testing Resilience, the organization highlighted that shipping activity through the Strait of Hormuz has slowed significantly, while damage to energy infrastructure in the region has led to sharp increases in prices, disruptions in essential commodity supplies, and heightened volatility in financial markets.

The OECD noted that the trajectory and duration of the ongoing tensions remain “highly uncertain,” warning that sustained high energy costs could increase operating expenses for businesses and intensify inflationary pressures.

Although the 2026 forecast remains unchanged, the organization emphasized that this still reflects a notable slowdown compared to the 3.3% global growth recorded in 2025.

As stated by reports, Türkiye’s economic outlook was also revised downward. Growth for 2026 is now expected to reach 3.3%, a slight reduction of 0.1 percentage point, while the 2027 estimate was cut by 0.2 percentage points to 3.8%. Inflation in Türkiye is projected to stand at 26.7% in 2026 and decline to 16.9% in 2027.

Across G20 nations, inflation is now forecast to hit 4% this year—1.2 percentage points higher than earlier estimates—before easing to 2.7% by 2027 as energy price pressures gradually diminish, according to reports.

The organization cautioned that extended disruptions to exports from the Middle East could drive energy prices even higher than anticipated, worsen supply shortages in key commodities, push inflation upward, and place additional strain on global economic growth.

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