OECD revises up 2024 global growth forecast to 2.9%

By Tuba Ongun

The Organization for Economic Cooperation and Development (OECD) on Monday revised up its global economic growth forecast for 2024 to 2.9%, from its previous projection of 2.7% in November.

This will follow a 3.1% growth last year with inflation declining more quickly than anticipated, the Paris-based organization said in its February Interim Economic Outlook report.

The global GDP growth is projected to pick up pace in 2025 to come in at 3%, thanks to ease of financial conditions, in line with the previous report.

The OECD revised up the US economic growth by 0.6 percentage points to 2.1% for 2024, backed by household spending and strong labor market conditions, but left it unchanged at 1.7% for 2025.

With activity held back by tight credit conditions in the near term, the eurozone GDP is estimated to rise 0.6% this year and 1.3% next year, revised downwards by 0.3 percentage points and 0.2 percentage points, respectively.

The OECD has kept China's growth forecast constant at 4.7% in 2024 and 4.2% in 2025 due to subdued consumer demand, high debt, and the weak property market.

Türkiye's GDP is foreseen at 2.9% in 2024 and 3.2% in 2025.

Turkish economy's growth forecast was held at 2.9% for 2024 and revised down by 0.1 percentage points to 3.1% in 2025.

The OECD foresees inflation will be back to target in most G20 countries by the end of next year with headline figure falling from 6.6% this year to 3.8% in 2025.

The core inflation in the G20 advanced economies will ease to 2.5% this year and 2.1% next year, it added.

The OECD warned that the growth could be weaker than expected if the lingering effects from past policy rate hikes are stronger than expected.