In its latest interim economic outlook released on Wednesday, the OECD raised its forecast for global growth in 2026 to 2.9 per cent from 2.8 per cent previously. However, its projection for 2027 was cut to 3.0 per cent from 3.1 per cent as the energy shock is expected to weigh on economic activity.
The organisation said the impact of reduced oil supplies had been contained by releases from strategic reserves, additional production outside the Gulf, alternative supply routes and weaker energy demand, particularly in China. Strong investment in artificial intelligence has also supported production, trade and growth.
Despite the resilience, the OECD warned that the buffers supporting the global economy are being depleted. Global oil inventories were about 507 million barrels lower in August than in February, while energy prices have risen again as disruptions persist.
G20 inflation is now projected at 4.1 per cent in 2026 before easing to 3.6 per cent in 2027, highlighting continued pressure on households and businesses.
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