OECD Upgrades Global Economic Growth Forecast to 3.1% for 2019 and 3.2% for 2025 Due to Stronger Than Expected Performance in US and China
The Organization for Economic Co-operation and Development (OECD) has increased its predictions for global economic growth in its latest forecast. It now anticipates a 3.1 percent expansion this year and a 3.2 percent growth in 2025, an adjustment due to the stronger-than-expected growth in the United States and China.
According to the OECD, global economic activity is on the rise, even though growth remains moderate. Despite tighter monetary conditions affecting areas such as housing and credit markets, the organization noted that global activity is proving to be relatively resilient, with falling inflation rates and increasing confidence in the private sector.
The pace of economic recovery varies across different countries, with Europe and many low-income countries experiencing slower growth compared to strong performances in the United States and several large emerging-market economies. Among major economies, the US is expected to grow by 2.6 percent this year and 1.8 percent in 2025, while China is projected to expand by 4.9 percent and 4.5 percent, respectively.
The eurozone is forecasted to achieve 0.7 percent growth this year and 1.5 percent growth in 2025, while the United Kingdom’s outlook has been downgraded to 0.4 percent growth this year and 1 percent growth in 2025 due to ongoing geopolitical tensions that continue to cloud the global outlook.
Despite the improved economic forecast, the OECD warns of “substantial uncertainty” that continues to cloud the global outlook
