PARIS, June 3 — Global economic growth is expected to slow from 3.4 per cent in 2025 to 2.8 per cent in 2026, before recovering to 3.1 per cent in 2027, according to the latest Economic Outlook report released by the Organisation for Economic Cooperation and Development (OECD) today.
Even though the world economy entered 2026 stronger than many had anticipated, the conflict in West Asia has become the dominant force shaping the global economic outlook, the OECD said, reported Xinhua.
According to the OECD, the evolution of the conflict remains uncertain, while its economic consequences are likely to be felt for some time even after its resolution.
Recognising this uncertainty, the organisation based its analysis on two possible trajectories: a time-limited disruption scenario, in which disruptions remain relatively short-lived, and a prolonged disruption scenario, with broader and much more lasting negative consequences.
Under a baseline scenario in which prospects for a peace deal between the United States and Iran gain momentum and energy prices gradually ease from mid-2026 onward, the OECD projects global economic growth to slow from 3.4 per cent in 2025 to 2.8 per cent in 2026 before recovering to 3.1 per cent in 2027.
