OECD raises global GDP forecast slightly for 2024

ISTANBUL

The Organization for Economic Co-Operation and Development (OECD) has increased its expectation for the global economic growth from 3.1% to 3.2% on Wednesday.

Releasing its Economic Outlook's Interim Report, the OECD said global output growth has remained resilient and inflation has continued to moderate.

It said: "Growth has been relatively robust in many G20 countries including the United States, Brazil, India, Indonesia and the United Kingdom.

"In contrast, outcomes have remained soft in a few economies, including Germany, and output contracted in Argentina."

The report forecasted that the G20 economies will grow by 3.2%, up 0.1 percentage points from the previous estimation, while the euro area's forecast was unchanged at 0.7% for this year.

Among major eurozone economies, France, Spain and Italy's GDP growth predictions increased while German economy is expected to expand by 0.1%, down 0.1 percentage points from the previous report in May.

Argentina's economy is expected to narrow by 4% in 2024, and Japan was only other country expecting a contraction in the economy among G20 for 2024, by 0.1%.

The organization expected an increase of 2.6% for the US economy and 1.1% for the UK.

Russian economy is forecasted to increase by 3.7% in 2024.

The Turkish economy is expected to increase by 3.2%, down 0.2 percentage points from the May report.

While the OECD's 2025 expectation for the world economy was unchanged at 3.2%, there were no negative forecast for G20 members.

Inflation

The OECD also forecasted that the headline inflation will decrease by 0.5 percentage points to 5.4% in G20.

The inflation expectation was at 2.4% in the euro area, up 0.1 percentage points.

Argentina's inflation forecast was at 147.5% for 2024, down by 60.6 percentage points.

The US economy's inflation forecast also decreased by 0.1 percentage points to 2.4%.