OECD Expects AI Boom to Help Offset Middle East Energy Shock for Now
The OECD said AI infrastructure spending is offsetting weaker consumer demand, while a Middle East energy shock could cut global growth by 0.7 points next year.
- On Wednesday, the OECD reported that AI-led investment is helping the global economy hold up better than expected this year, though energy shocks are weighing on the 2027 outlook.
- Strong spending on AI infrastructure, from data centres to semiconductors, has boosted growth in the United States while lifting technology exports from Japan and Korea this year.
- Global economic growth is projected to slow to 2.9% in 2026, while China's growth is expected to decline to 4.5% this year and Euro zone growth holds at 1.0%.
- Potential risks including energy market jitters, extreme weather, and surging bond yields could reduce global growth by 0.7 percentage points next year and raise inflation by 1.1 percentage points.
- Heading into 2027, the commodity price shock from Middle East conflict is expected to weigh on momentum, potentially forcing central banks to adjust interest rates if price pressures broaden.
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OECD expects AI boom to help offset Middle East energy shock for now
AI-led investment is helping the global economy hold up marginally better than expected this year, but the energy shock is becoming more entrenched, weighing on the outlook for 2027, the OECD said on Wednesday.
AI Boom Cushions Global Economy as Middle East Energy Shock Clouds 2027 Outlook
The global economy is showing more resilience than expected in 2026, helped by a surge in investment linked to artificial intelligence, but the impact of the Middle East conflict on energy markets is becoming a growing threat to global growth. The Organisation for Economic Co operation and Development expects the global economy to grow 2.9% […]
The Organisation for Economic Co-operation and Development (OECD) expected the world economy to grow by 2.9 per cent in 2026 and by 3 per cent in 2027, which was updated.
(Berlin=Yonhap News) Correspondent Kim Gye-yeon = The Organization for Economic Cooperation and Development (OECD) said on the 23rd (local time) that investment and trade related to artificial intelligence (AI) offset the risks of the Middle East conflict...
A new economic forecast from the OECD shows that the world economy has weathered the Middle East war and the energy shock without major damage. But the organization also sees a bleak scenario.
Middle East War Tensions Rise, Global Economic Growth Predicted at 3 Percent (PHOTO: iNews Media Group)
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