OECD raises its global growth forecast to 3.1% in 2024

The Organization for Economic Cooperation and Development raised its forecast for global growth in 2024 to 3.1%, after it was 2.9% during its last forecast in February. This is especially due to the dynamic recovery in the United States, while the euro zone remains lagging behind.

According to CNBC, the Paris-based organization said in its latest quarterly report, “Cautious optimism has begun to sweep the global economy, despite modest growth and the continuing shadow cast by geopolitical risks.”

The Organization for Economic Cooperation and Development considered that high geopolitical tensions still pose a risk to the economy in the short term, “especially if conflicts intensify in the Middle East and cause turmoil in energy and financial markets, leading to exacerbation of inflation and slowing growth.”

However, she pointed out that the report shows great disparities between countries in terms of recovery, according to the rate of decline in inflation and the reduction of interest rates in particular.

Also, the US economy is now expected to grow by 2.6% in 2024, which is an increase from the 2.1% that was expected in the previous report, and higher than the 2.5% recorded last year.

Chinese growth is still stronger, with the organization raising its forecast for it to 4.9% in 2024 compared to 4.7% previously, thanks in particular to an expansionary budget.

But the situation is different for the euro zone, as the organization expected in its report that growth would rise slightly by 0.7%, compared to the previously expected 0.6%. However, it expected a recovery of 1.5% in 2025, thanks to the recovery in domestic demand.