Resilient Growth OECD: Balancing Stability and Innovation

The global economy is growing faster than expected, largely thanks to a resilient US economy and inflation slowing more quickly than predicted, the OECD said on 2 May, as it updated its economic outlook. World growth in 2024 is expected to keep up with the 3.1% growth rate reported last year, rising to 3.2% in 2025. This upgrades the OECD's previous forecasts in February for 2.9% this year and 3% the next. “The global economy has proved resilient, inflation has declined within sight of central bank targets, and risks to the outlook are becoming more balanced.” “We expect steady global growth for 2024 and 2025, though growth is projected to remain below its longer-run average,” OECD Secretary-General Mathias Cormann said. “Policy action needs to ensure macroeconomic stability and improve medium-term growth prospects. Monetary policy should remain prudent, with scope to lower policy interest rates as inflation declines, fiscal policy needs to address rising pressures to debt sustainability, and policy reforms should boost innovation, investment and opportunities in the labour market particularly for women, young people and older workers.”