Global Economic Outlook Upgraded to 3.1% Growth in 2024 thanks to Stronger-than-Expected Growth in US and China

The Organisation for Economic Co-operation and Development (OECD) has revised its global economic outlook, predicting growth of 3.1 percent this year and 3.2 percent in 2025. This upgrade is attributed to stronger-than-expected growth in both the United States and China.

Despite modest growth, the OECD noted signs of improvement in the global economy, with inflation falling faster than initially projected and private sector confidence on the rise. Recovery rates varied among countries, with softer outcomes seen in Europe and low-income countries, while the United States and many large emerging-market economies experienced strong growth.

According to the OECD’s forecast, the US economy is expected to grow by 2.6 percent this year and 1.8 percent in 2025. China, the second-largest economy in the world, is projected to expand by 4.9 percent in 2024 and 4.5 percent next year. The eurozone is anticipated to see growth of 0.7 percent this year and 1.5 percent in 2025.

However, the United Kingdom’s outlook has been downgraded, with growth expected to reach 0.4 percent this year and 1 percent in 2025. The OECD highlighted ongoing uncertainty in the global outlook, including geopolitical tensions in the Middle East that could potentially disrupt energy and financial markets.

While risks remain in the global economy, the OECD believes that