BAKU, Azerbaijan, December 4. The global economy is expected to grow at a moderate pace, with the Organization for Economic Co-operation and Development (OECD) projecting global GDP growth of 3.2% this year and slightly accelerating to 3.3% in 2025 and 2026, Trend reports.
While the lagged effects of monetary tightening continue to weigh on growth, the gradual easing of inflation is expected to pave the way for lower interest rates, stimulating private investment and consumption in the coming years.
According to the OECD, disinflation will play a key role in boosting real household incomes, while some countries may see further reductions in household savings, supporting private consumption growth. However, growth in OECD member economies will remain modest, with GDP expected to rise by 1.9% annually in both 2025 and 2026—consistent with underlying potential output but below pre-pandemic levels.
Emerging economies, particularly in Asia, will continue to be the primary drivers of global growth, although their pace of expansion is projected to ease slightly. China is expected to maintain fiscal and monetary support, while Brazil, India, and other major emerging markets are likely to adopt more restrictive fiscal policies, even as interest rates decline.
The OECD also notes that central banks across most economies are likely to reduce policy rates as inflationary pressures subside and labor market conditions ease. By 2026, real interest rates in many economies could align with neutral levels, offering additional support to growth. However, fiscal tightening in several OECD countries could pose mild headwinds to economic expansion.
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