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OECD lifts 2026 global growth forecast to 2.9% despite Mideast war
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PARIS: Economic growth has remained “resilient” in many countries despite the war in the Middle East, the OECD said Wednesday as it slightly raised its GDP forecasts for the year. Global economic growth is now seen at 2.9 percent, a 0.1-point increase from estimates in June by the Paris-based group of 38 industrialised countries. Even though energy prices have soared since the United States and Israel launched strikes against Iran last February, the OECD noted that “broader financial conditions remain supportive”, as seen in rising equity markets and continued access to credit. “Sizeable oil inventories, additional supply from outside the Gulf economies and discretionary government support measures all helped to cushion the impact on the global economy,” the group said in its quarterly update. It also cited the massive investments in artificial intelligence and the resulting boost to production and trade, which could result in “stronger growth than projected”. AEOI: OECD team undertakes onsite assessment But global growth has slowed sharply from the 3.4 percent chalked up last year, and the group trimmed its 2027 growth forecast by 0.1 percentage point, to three percent.
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