PARIS, FRANCE / RankWire.AI / – OECD revised its projection for worldwide expansion in 2026 to 2.9%, citing a stronger-than-anticipated economic resilience. This marks an increase from the 2.8% forecast issued in June. Nevertheless, the organization lowered its 2027 outlook to 3.0% from 3.1%. Ongoing investment in artificial intelligence continued to bolster output, trade, and overall economic activity. Meanwhile, elevated energy prices and inflationary pressures persisted as significant challenges across major economies.
The September Interim Economic Outlook indicated that global growth slowed during the first half of 2026. The annualized rate declined to 2.6%, down from 3.6% in the second half of 2025. Despite this slowdown, economic activity in many energy-importing and exporting nations remained more robust than initially expected. Factors such as oil inventories, additional production outside the Gulf, and alternative supply routes contributed to mitigating the energy shock. Additionally, China’s reduced oil demand played a role in balancing global energy markets.
According to the OECD, technology investments continued to be a key driver of economic support. Semiconductor exports experienced significant growth in Korea and Japan, while China also recorded an uptick in technology exports. Technological industrial production remained rapidly expanding across much of Asia. Similar trends were evident in the United States and several European nations. Consumer confidence saw improvements in advanced economies after May, with unemployment rates staying low in numerous countries. However, household purchasing power remained under pressure due to rising fuel costs.
US Economic Growth Gains Momentum While Eurozone Remains Sluggish
The US economy is projected to expand by 2.2% in 2026 and 2.1% in 2027. This growth is supported by substantial AI-related investments, though slower consumer spending and sluggish real income growth continue to restrain overall progress. The euro area’s GDP is expected to grow by 1.0% in both years, with increased energy costs and rising interest rates dampening activity across the region. Japan’s economy is forecasted to grow 0.8% in 2026, with a slight easing to 0.7% in 2027.
China’s economy is anticipated to grow 4.5% in 2026 before decelerating to 4.2% in 2027. India is projected to see a 7.1% expansion in fiscal year 2026-27, following a 7.8% growth in the previous year. Growth for India in 2027-28 is forecast at 6.5%. Indonesia’s economy is expected to increase by 5.2% in 2026 and 5.1% in 2027. Mexico’s economy is predicted to grow 1.5% this year and 1.8% in the following year.
Inflation in G20 Countries Rises Amid Energy Cost Pressures
Inflation remains a critical issue in the OECD outlook. The G20 economies are expected to see headline inflation of 4.1% in 2026, up from 3.4% in 2025, with a forecast of 3.6% in 2027. The advanced G20 nations are projected to experience inflation rates of 3.2% this year and 2.6% next year. Specifically, the United States’ rate is expected to decline from 3.6% in 2026 to 2.6% in 2027. Inflation in the euro area is forecast at 3.0% and 2.9%, respectively.
The OECD highlighted that rising energy prices have increased household expenses and renewed inflationary pressures in many countries. Additionally, long-term government bond yields have climbed as public borrowing costs and debt service payments rise. OECD Secretary-General Mathias Cormann stated that global growth had performed better than expected, although the economy remains weaker than in the previous year. The organization recommended targeted, temporary support measures, sustainable public finances, and enhanced long-term productivity. It also urged governments to invest in skills development, diversify energy supplies, and promote broader adoption of artificial intelligence.