OECD expects global growth to stabilize at 3.2% until 2025

Logo of The Organization for Economic Cooperation and Development (OECD) 

The Organization for Economic Cooperation and Development (OECD) expects global economic growth to stabilize at 3.2% in 2024 and 2025, in line with the average growth achieved in the first half of this year.

In its Economic Outlook report issued today, the organization noted that inflation in most member countries is easing, driven by slowing food inflation and lower energy prices.

As a result, 80% of OECD member states have inflation near the 2% target, though service price inflation is falling more slowly.

The OECD forecasts G20 inflation to drop to 5.4% in 2024 from 6.1% last year and further to 3.3% in 2025.

Inflation in emerging economies is expected to remain higher than in advanced ones.

OECD Secretary-General Mathias Cormann said that the global economy is recovering, with inflation easing and trade growing strongly.

However, the organization highlighted risks, such as the potential for past monetary tightening to impact demand more than expected, and the possibility of financial market disruptions if central banks deviate from expected easing.

The OECD expects India to be the fastest-growing economy in 2024 and 2025, growing 6.7% and 6.8%, respectively.

It also forecasts Argentina's economy will shrink by 4% this year, before rebounding with 3.9% growth in 2025.

For Saudi Arabia, the OECD predicts 1% growth this year, accelerating to 3.7% in 2025, making it the fifth fastest-growing economy among its members.