Global Growth Expected to Stabilize, Inflation to Decrease
The Organization for Economic Co-operation and Development (OECD) reports that global growth is expected to stabilize, rising from 3.1% in 2023 to 3.2% in 2024 and 2025.
Inflation on the Decline
After reaching 6.1% in 2023, global inflation in G20 economies is expected to decrease to 5.4% in 2024 and 3.3% in 2025. By August 2024, 80% of OECD countries had inflation rates close to or within 1 percentage point of their target rate.
Country-Specific Growth Projections
United States
The real GDP growth rate is expected to settle at 2.6% in 2024 and 1.6% in 2025.
Canada
Growth is expected to reach 1.1% this year, increasing to 1.8% in 2024.
Europe
The eurozone is expected to benefit from lower interest rates and a rebound in real incomes, resulting in growth rates of 0.7% in 2024 and 1.3% in 2025. The UK is expected to see GDP growth of 1.1% in 2024 and 1.2% in 2025.
Emerging Economies
In contrast, emerging economies continue to show more dynamic performances. India's growth is expected to reach 6.7% in 2024-2025 and 6.8% in 2025-2026. Indonesia is also expected to experience solid growth, with rates of 5.1% in 2024 and 5.2% in 2025. While China's growth is slowing, it remains on a notable trajectory, with expected growth rates of 4.9% in 2024 and 4.5% in 2025, highlighting the growing divergence between advanced and emerging economies.
