OECD Raises Global Economic Growth Forecast to 2.9% in 2026

(AFP) – The Organisation for Economic Co-operation and Development (OECD) raised its 2026 global growth forecast by 0.1 percentage point to 2.9%, noting that government aid aimed at mitigating the impact of rising energy prices, along with strong investments in artificial intelligence, offset the repercussions of the war in the Middle East.

After the global economy recorded growth of 3.4% in 2025, the OECD expects growth to slow to 2.9% this year, before recovering to 3% in 2027, an increase of 0.1 percentage point.

In its quarterly report, “Global Economic Prospects,” the OECD attributed the continued strength of growth to several factors, including exceptional government support measures, partial use of alternative raw materials, increased supply from economies outside the Gulf, drawing down oil from stockpiles, and the ongoing dynamism of artificial intelligence activities.

The OECD expects global growth to begin recovering in 2027, driven by a gradual decline in energy prices and falling inflation, particularly as monetary policy tightens.