OECD Expects AI Boom to Help Offset Middle East Energy Shock for Now
AI infrastructure spending helped offset weaker consumer demand, while the OECD warned energy shocks and higher bond yields could cut 2027 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.
83 Articles
83 Articles
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.
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.
The Organization for Economic Cooperation and Development raised its global growth forecast for 2026 in its quarterly report on the world economy by 0.1 per cent, to 2.9 per cent, a slowdown compared to last year (+3.4%), attributable to the higher energy prices and the higher prices that erode purchasing power. “Global economic growth has slowed but remained resilient,” said the Paris-based institution.
The Secretary General of the OECD, Mathias Cormann, warned this Wednesday that the persistence of tensions in the Middle East, the high prices of energy and the increase of uncertainty despite resisting better than expected in 2026 to the energy shock. Regarding artificial intelligence, the agency maintained that ... Continue reading "The OECD reduces the prospect of growth by 2027 and says that AI is a double-edged weapon"
Coverage Details
Bias Distribution
- 56% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
