GLOBAL economic growth is projected to ease to 2.9 per cent in 2026 from 3.3 per cent in 2025, before edging up to 3.0 per cent in 2027, the Organization for Economic Cooperation and Development (OECD) said in its latest Economic Outlook on Thursday.
The report said that the evolving conflict in the Middle East will test the resilience of the global economy. A prolonged period of higher energy prices would add markedly to business costs, raise consumer price inflation, and have adverse consequences for growth.
Prior to the conflict’s escalation, global growth remained resilient due to strong AI-related investment and production as well as favourable fiscal conditions, the report said. Following the fighting in the Middle East, surging energy prices and heightened uncertainty have raised costs and dampened demand, offsetting earlier growth momentum, it added.
According to the report, economic growth in the United States will moderate from 2.0 per cent in 2026 to 1.7 per cent in 2027, as strong AI-related investment is gradually offset by a slowdown in real income growth and consumer spending. In the euro area, economic growth is expected to ease to 0.8 per cent in 2026, as higher energy prices weigh on activity, before rising to 1.2 per cent in 2027, supported by stronger defence spending.
Xinhua
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