The Organisation for Economic Co-operation and Development (OECD) stated on Monday that the global economy is set to grow this year better than previously expected a few months ago, as improved forecasts for the United States compensate for weakness in the Eurozone. Global economic growth is expected to slow from 3.1% in 2023 to 2.9% this year, which is better than the organisation's latest forecasts of 2.7% made last November.
In an update on its forecasts for major economies, the OECD kept its global growth estimate for 2025 at 3.0%, based on expectations of major central banks lowering interest rates as inflationary pressures ease. The OECD raised its growth forecast for the U.S. economy in 2024 to 2.1% from 1.5% in previous forecasts, while leaving its 2025 forecast unchanged at 1.7%.
The organisation maintained its expectation for a slowdown in China's growth to 4.7% in 2024 from 5.2% in 2023, and to 4.2% in 2025, amidst fluctuations in the country's real estate market and weak consumer confidence.
The OECD reduced its growth forecast for the Eurozone to 0.6% compared to previous forecasts of 0.9% and growth of 0.5% during the last year. It also lowered its growth forecast for the region in 2025 from 1.5% to 1.3%, attributing these expectations to the impact of the slowdown in the German economy on the region.
