OECD Expects AI Boom to Help Offset Middle East Energy Shock for Now
The Paris-based group said AI spending is boosting U.S. growth and technology exports from Japan and Korea, while risks could cut growth by 0.7 points.
- On Wednesday, the Organization for Economic Cooperation and Development raised its 2026 global growth forecast to 2.9%, a 0.1 percentage point increase over June's estimates despite Middle East conflict.
- Strong spending on AI infrastructure, including data centers and semiconductors, has fueled global economic resilience, boosting growth in the United States and lifting technology exports from Japan and Korea.
- Divergent regional outlooks persist across major economies: the United States expects 2.2% growth, China slows to 4.5%, Canada's forecast was cut to 0.9%, and Euro zone growth holds at 1.0%.
- Surging government bond yields and extreme weather related to El Niño threaten the global outlook, with the OECD warning these risks could reduce growth by 0.7 percentage points next year.
- Global growth projections for 2027 dropped to 3.0%, with the OECD emphasizing that rising bond yields require enhanced efforts to strengthen revenues and ensure longer-term debt sustainability.
128 Articles
128 Articles
OECD sees global growth holding up after energy shock, but forecasts higher inflation
The OECD now expects the global economy to grow by 2.9% in 2026 and 3.0% in 2027, after the disruption to energy supplies proved less damaging in the immediate term than feared. Its new outlook still warns that higher energy costs, weaker buffers and uncertain financing for AI investment leave the expansion exposed.
The Organisation for Economic Co-operation and Development (OECD) revealed on Wednesday 23 September its quarterly report on the world economic outlook. While the world's economy continues to suffer the shocks caused by the crisis in the Middle East and its impact on oil prices, it has resisted rather well in recent months, hence forecasts rising by the end of the year. However, the follow-up is expected to be much more uncertain. The organizati…
The OECD projects global growth of 2.9 per cent in 2026 driven by artificial intelligence and subsidies, while El Niño and geopolitical tensions threaten prices.
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