Global economy faces high inflation and slow growth, OECD and IMF warn

Global economic outlooks from the OECD and IMF indicate that while the world economy has shown resilience against energy shocks and geopolitical conflicts, growth remains slow and uncertainty remains high.

The OECD predicts global economic growth of 2.9 percent in 2026 and 3 percent in 2027. However, inflation is expected to remain higher than previously anticipated. Average inflation in G20 countries is projected to rise from 3.4 percent in 2025 to 4.1 percent this year, with a projected rate of 3.6 percent in 2027. OECD Secretary-General Mathias Cormann warned that decreasing energy reserves and rising borrowing costs for states and households pose significant risks.

IMF Managing Director Kristalina Georgieva noted that the conflict in the Middle East has become a primary shock, limiting growth and disrupting raw material supplies. She credited private sector flexibility and investments in artificial intelligence for maintaining stability but emphasized that medium-term growth prospects remain weak. Georgieva highlighted the need for disciplined economic policies and fiscal prudence to strengthen resilience against future shocks.