Global economic growth projected at 2.9 pct in 2026: OECD

Growth in the advanced G20 economies, as well as in the G20 emerging-market economies, is projected to remain broadly stable, the report released by the OECD said. PARIS, Sept. 23 (Xinhua) -- Global economic growth is projected to be 2.9 percent in 2026 and 3.0 percent in 2027, according to the Economic Outlook Interim Report released by the Organization for Economic Cooperation and Development (OECD) on Wednesday. Growth in the advanced G20 economies, as well as in the G20 emerging-market economies, is projected to remain broadly stable, the report said. G20 headline inflation is expected to rise from 3.4 percent in 2025 to 4.1 percent in 2026, before easing to 3.6 percent in 2027, according to the report. In the advanced G20 economies, headline inflation is projected to rise from 2.5 percent in 2025 to 3.2 percent in 2026, before falling to 2.6 percent in 2027, while in emerging-market G20 economies it is expected to increase from 4.1 percent to 4.8 percent before easing to 4.3 percent. The OECD noted that the projections are based on a technical assumption that Brent crude prices and TTF gas prices will peak in the fourth quarter of 2026 and then decline steadily through the end of 2027. The assumed Brent crude price path is broadly consistent with the "short disruption" scenario in the OECD's June 2026 Economic Outlook, while the assumed gas price path is about 60 percent higher. Persistent uncertainty over the evolution of the conflict in the Middle East remains a key risk to the baseline projections, the OECD warned, adding that constraints on exports through the Strait of Hormuz, additional disruptions to alternative export routes such as the Bab al-Mandeb Strait, or further significant damage to energy production facilities in the region could prompt a further sustained rise in energy prices and potentially lead to shortages of key commodities, particularly in net importing countries. Low European gas reserves and uncertain scope for sustained further reductions in oil inventories in some countries could exacerbate supply disruption risks. "Further monetary policy rate adjustments may be needed," the OECD said, noting that faced with renewed energy price shocks, stronger-than-expected demand pressures, and above-target inflation in many economies, central banks need to ensure that underlying inflation pressures are durably contained. The OECD also called for further structural policy reforms to help economies cope with future supply shocks, including diversifying energy supply, improving energy efficiency, enhancing product and labor market adjustment, and ensuring workers have adaptable skills.