OECD Keeps 2026 Global Growth Forecast at 2.9 Pct

Lyon, March 26 (Jiji Press)–The Organization for Economic Cooperation and Development maintained its global economic growth forecast at 2.9 pct for 2026, in its latest Economic Outlook report released on Thursday. While noting that how the conflict between the U.S.-Israeli camp and Iran will develop is “very uncertain,” the OECD assumed that the energy market will gradually regain calm, pushing down oil, gas and fertilizer prices from the middle of the year. Still, the OECD warned that “a prolonged period of higher energy prices will add markedly to business costs and raise consumer price inflation, with adverse consequences for growth.” By country or region, the OECD kept its 2026 growth forecasts for Japan and China unchanged at 0,9 pct and 4.4 pct, respectively. For the United States, it raised the growth projection by 0.3 percentage point to 2.0 pct, reflecting strong investment related to artificial intelligence, and boosted the inflation forecast by 1.2 points to 4.2 pct. Meanwhile, the eurozone economy is expected to grow 0.8 pct, a downward revision of 0.4 point, as higher oil and gas prices are seen weighing on corporate activity. The OECD pointed out that monetary policy adjustment by central banks “may be needed if price pressures broaden or if growth prospects weaken substantially.” The organization added that any government measures to cushion the impact of higher energy prices, such as subsidies, “should be timely, well-targeted on households…and have clear expiry mechanisms.” END [Copyright The Jiji Press, Ltd.]