Despite challenges to growth, the global economy is projected to remain resilien, according to the latest economic outlook report by the Organisation for Economic Cooperation and Development (OECD).  

Global GDP growth is expected to rise slightly: 

• 3.2% in 2024 

• 3.3% in 2025 

• 3.3% in 2026 

Restrictive monetary policy in many countries is expected to help ease inflation, the OECD said, projecting it to drop from 5.4% in 2024 to 3.8% in 2025 and 3% in 2026.  

Inflation has already returned to countries’ central bank targets in nearly half of advanced economies and close to 60% of emerging market economies, the outlook noted. 

Growth prospects vary significantly across regions, with GDP growth in the US projected to be 2.8% in 2025, before slowing to 2.4% in 2026.  

In the euro area, however, the recovery in real household incomes, tight labour markets and reductions in policy interest rates are expected to drive growthto 1.3% in 2025 and 1.5% in 2026.  

Growth in Japan is projected to expand by 1.5% in 2025 then decline to 0.6% in 2026. China is expected to continue to slow, with GDP growth of 4.7% in 2025 and 4.4% in 2026. 

“The global economy has proved resilient. Inflation has declined further towards central bank targets, while growth has remained stable,” OECD Secretary-General Mathias Cormann said in a press release. “Significant challenges remain. Geopolitical tensions pose short-term risks, public debt ratios are high and medium-term growth prospects are too weak. Policy action needs to safeguard macroeconomic stability – through monetary policy easing that is carefully calibrated to ensure inflationary pressures are durably contained and through fiscal policy that rebuilds fiscal space to preserve room to meet future spending pressures. To boost productivity and the foundations for growth, we must enhance education and skills development efforts, undo overly stringent constraints to business investment and successfully tackle the structural increase in labour shortages.”