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OECD raises global growth forecast to 2.9%

The OECD has upgraded its global economic growth forecast for this year to 2.9%, attributing the increase to an improved outlook for the US. Despite the positive adjustment from the previously predicted 2.7% growth, the OECD cautions against potential risks from the Middle East conflict, particularly disruptions in Red Sea shipping which could heighten consumer prices. The conflict, involving Israel, Hamas in Gaza, and attacks by Yemeni rebels on Red Sea shipping, threatens to disrupt energy markets and exacerbate supply bottlenecks, possibly leading to higher energy prices. Global growth showed resilience last year, achieving a 3.1% increase, supported by declining inflation and strong performance in the US and emerging markets. However, the OECD warns of continued inflationary pressures and advises cautious monetary policy to manage inflation effectively.


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