OECD Expects AI Boom to Help Offset Middle East Energy Shock for Now
AI infrastructure spending helped global growth hold up, while the OECD warned the Middle East energy shock could cut next year’s growth by 0.7 points.
- On Wednesday, the Organization for Economic Cooperation and Development raised its 2026 global growth forecast to 2.9%, a 0.1 percentage point increase over June's estimates despite Middle East conflict.
- Strong spending on AI infrastructure, including data centers and semiconductors, has fueled global economic resilience, boosting growth in the United States and lifting technology exports from Japan and Korea.
- Divergent regional outlooks persist across major economies: the United States expects 2.2% growth, China slows to 4.5%, Canada's forecast was cut to 0.9%, and Euro zone growth holds at 1.0%.
- Surging government bond yields and extreme weather related to El Niño threaten the global outlook, with the OECD warning these risks could reduce growth by 0.7 percentage points next year.
- Global growth projections for 2027 dropped to 3.0%, with the OECD emphasizing that rising bond yields require enhanced efforts to strengthen revenues and ensure longer-term debt sustainability.
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118 Articles
The Organisation for Economic Co-operation and Development (OECD) revealed on Wednesday 23 September its quarterly report on the world economic outlook. While the world's economy continues to suffer the shocks caused by the crisis in the Middle East and its impact on oil prices, it has resisted rather well in recent months, hence forecasts rising by the end of the year. However, the follow-up is expected to be much more uncertain. The organizati…
The OECD projects global growth of 2.9 per cent in 2026 driven by artificial intelligence and subsidies, while El Niño and geopolitical tensions threaten prices.
For now, the world economy is withstanding shocks better than expected, so the OECD estimated in its September report that the growth rate of the global economy will be 2.9 percent this year, which is an increase compared to the previous forecast of 2.8 percent. Admittedly, for the next year, growth is forecast to decrease from 3.1 to three percent.
The OECD, which brings together rich nations, has revised the growth forecast of the Brazilian and world economy this year. In the case of Brazil, the new estimate is of 2% advance, before 1.6% made in June. For the world, the forecast has become 2.9%, slightly higher than the 2.8% projected four months ago. The global economy has been affected by the war in the Middle East, says the institution, but investments in artificial intelligence have e…
OECD lifts 2026 global growth forecast to 2.9% despite Iran war
The OECD has nudged up its forecast for global growth this year to 2.9%, saying the world economy has absorbed the energy shock from the Iran war better than expected, but it warned that persistent inflation, rising bond yields and the risk of a longer conflict continue to cloud the outlook.
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