The global economy is on course to hold up better this year than expected only a few months ago as an improved outlook in the United States offsets euro zone weakness, the OECD said.
World economic growth is expected to ease from 3.1% in 2023 to 2.9% this year, better than the 2.7% expected in November in the Organisation for Economic Cooperation and Development’s last outlook.
In an update of its forecasts for major economies, the Paris-based OECD left its 2025 global estimate unchanged at 3.0%, when growth is expected to be boosted by major central banks rate cuts as inflation pressures subside.
The U.S. economy was expected to grow 2.1% in 2024 and 1.7% in 2025 as lower inflation boosted wage growth and triggers interest rate cuts, the OECD said, raising its 2024 forecast from 1.5% previously and leaving 2025 unchanged.
As China contends with real estate market wobbles and weak consumer confidence, its growth was seen slowing from 5.2% in 2023 to 4.7% in 2024 and to 4.2% in 2025, all unchanged from November forecasts.
With a slowdown in Germany weighing on the broader euro area, the shared currency bloc’s outlook had worsened since November, with its economy now expected pick up from 0.5% last year to only to 0.6% this year, down from 0.9% previously.
In 2025, it was seen growing 1.3%, revised down from 1.5%.
Article Source – Global economy to fare better than thought in 2024 – OECD – RTE