Upgraded Estimates: U.S. and China Economic Growth Exceeds Forecasts

Upgraded Estimates: U.S. and China Economic Growth Exceeds Forecasts

Cairo: Hani Kamal El-Din

The Organisation for Economic Co-operation and Development (OECD) has raised its estimate for global GDP growth in 2024 to 3.1% from the previously anticipated 2.9%.

According to a new economic report, growth in 2025 is projected to reach 3.2% compared to the previous forecast of 3%.

“The global economic recovery post-pandemic is progressing faster than we anticipated,” noted OECD Chief Matthias Kormann while presenting the report.

He attributed this to successful country adaptation to energy disruptions and China’s reopening after prolonged lockdowns.

Experts have revised upward the growth estimate for 2024 for the United States (from 2.1% to 2.6%) and China (from 4.7% to 4.9%). In 2025, the U.S. economy is expected to grow by 1.8% (previous forecast 1.7%), while the Chinese economy is forecast to grow by 4.5% compared to 4.2% previously.

However, inflation remains elevated in most countries: it is expected to be 5.6% in the eurozone in 2023 and 3.1% in 2024, and in the United States 4% and 3.2% respectively. The OECD warns of the danger of prolonged stagflation due to persistent price pressures.