PARIS, FRANCE / RankWire.AI / – The OECD has increased its forecast for global growth in 2026 to 2.9%, citing the resilience of the world economy surpassing earlier expectations. This revision is up from the 2.8% prediction made in the organization’s June report. Nevertheless, the OECD has lowered its 2027 outlook to 3.0% from 3.1%. Continued investment in artificial intelligence has played a significant role in supporting production, trade, and overall economic activity. Meanwhile, rising energy prices and inflationary pressures remain critical challenges for major economies.
According to the September Interim Economic Outlook, global growth experienced a slowdown during the first half of 2026, with the annualized rate dropping to 2.6% from 3.6% in the second half of 2025. Despite this, economic activity stayed stronger than anticipated in many countries that import and export energy. Contributing factors such as oil inventories, increased production outside the Gulf region, and alternative supply routes helped mitigate the energy shock, while reduced oil demand from China also contributed to balancing global energy markets.
The OECD emphasized that technology investments continue to serve as a vital engine for economic support. Exports of semiconductors surged notably in Korea and Japan, with China also experiencing a rise in technology exports. Industrial output related to technology maintained rapid expansion across much of Asia, and similar growth was seen in the United States and several European nations. Consumer confidence improved in advanced economies after May, and unemployment rates remained low in many areas. However, elevated fuel costs continued to exert pressure on household purchasing power.
US Gains Momentum as Eurozone Remains Weak
The US economy is projected to expand by 2.2% in 2026 and 2.1% in 2027. Investment related to AI remains a key driver, although slower consumer spending and modest growth in real income are restraining overall gains. The euro area’s GDP is expected to grow by 1.0% in both years, with higher energy prices and interest rates dampening activity across the region. Japan’s economy is forecast to grow 0.8% in 2026 before easing slightly to 0.7% in 2027.
China’s economy is predicted to grow 4.5% in 2026, then slow to 4.2% in 2027. India is expected to achieve a 7.1% expansion in the fiscal year 2026-27, following 7.8% in the previous year. Growth projections for India in 2027-28 stand at 6.5%. Indonesia is forecast to expand 5.2% in 2026 and 5.1% in 2027. Mexico’s economy is expected to grow by 1.5% this year and 1.8% next year.
Inflation Rises Across G20 Due to Energy Prices
Inflation remains a key concern in the OECD outlook. The headline inflation rate across G20 nations is projected to reach 4.1% in 2026, up from 3.4% in 2025, and is expected to ease to 3.6% in 2027. Advanced G20 economies are forecast to see inflation of 3.2% this year and 2.6% next year, with the United States rate expected to decrease from 3.6% in 2026 to 2.6% in 2027. Inflation in the euro area is predicted at 3.0% and 2.9%, respectively.
The OECD highlighted that rising energy costs have driven up household expenses and reignited inflationary pressures in many economies. Additionally, long-term government bond yields have increased as public borrowing and debt servicing costs rise. OECD Secretary-General Mathias Cormann stated that global growth has held up better than expected, though the economy remains weaker than last year. The organization recommends targeted short-term support, maintaining sustainable public finances, and enhancing long-term productivity. It also calls on governments to promote skills development, diversify energy sources, and encourage wider adoption of artificial intelligence.