OECD raises 2025 global growth forecast to 3.3% from 3.2%, warns of protectionism risks

Dhwani Mehta FXStreet

The Organization for Economic Co-operation and Development (OECD) warned of increasing growth risks from rising trade tensions and protectionism even after raising the global growth outlook for the next year.

Key takeaways

Sees 2024 global growth at 3.2% (unchanged), sees 3.3% in 2025 and 2026 (2025 raised from 3.2% previously).

Raises 2024 US growth forecast to 2.8% (2.6% previously), raises 2025 to 2.4% (from 1.6%) sees 2026 at 2.1%.

Sees the Japanese economy contracting 0.3% in 2024 (-0.1% previously), rebounding to 1.5% in 2025 (1.4% previously), sees 2026 at 0.6%.

Sees 2024 Chinese growth at 4.9% (unchanged), 2025 at 4.7% (4.5% previously) and 2026 at 4.4%.

Sees Eurozone growth at 0.8% in 2024 (0.7% previously), 1.3% in 2025 (unchanged) and 1.5% in 2026.

Sees US Fed cutting rates to 3.25-3.50% by q1 2026, ECB seen cutting to 2.0% by end 2025, the BoJ seen raising to 1.5% by end 2026.

Trims 2024 UK growth to 0.9% (1.1% previously), raises 2025 to 1.7% (1.2% previously), sees 1.3% in 2026.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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