PARIS, FRANCE / RankWire.AI / – The OECD has increased its projection for global growth in 2026 to 2.9%, reflecting a more robust economic performance than initially anticipated. This upward revision follows the organization’s June forecast, which predicted a growth rate of 2.8%. Conversely, the OECD has lowered its outlook for 2027 to 3.0% from 3.1%. Continued investment in artificial intelligence sectors has sustained support for production, international trade, and overall economic activity. Meanwhile, rising energy costs and inflationary pressures remain significant concerns for leading economies.
The September Interim Economic Outlook indicates a slowdown in global expansion during the first half of 2026. The annualized growth rate decreased to 2.6%, down from 3.6% during the latter half of 2025. Despite this, many energy-importing and exporting nations experienced stronger-than-expected economic activity. Factors such as oil inventories, extra production outside the Gulf, and alternative supply routes played roles in mitigating the energy shock. Additionally, reduced oil demand from China contributed to balancing global energy markets.
The OECD highlighted that technology investment continues to serve as a vital pillar of economic resilience. In particular, exports of semiconductors surged notably in Korea and Japan, while China also reported stronger technology export figures. Industrial output related to technology maintained rapid expansion across much of Asia. Similar trends of growth were observed in the United States and various European nations. Consumer confidence improved in advanced economies since May, and unemployment rates stayed low in many regions. Nevertheless, escalating fuel prices persisted in exerting pressure on household purchasing power.
US Economic Momentum Grows While Eurozone Remains Lagging
The United States is projected to expand its economy by 2.2% in 2026 and 2.1% in 2027. Growth is supported by substantial investments related to artificial intelligence, although weaker consumer spending and stagnant real income growth have limited overall gains. The euro area’s GDP is expected to increase by 1.0% in both years, hampered by rising energy costs and interest rates. Japan’s economy is forecast to grow 0.8% in 2026 before slowing slightly to 0.7% in 2027.
China’s economy is predicted to grow 4.5% in 2026, then decelerate to 4.2% in 2027. India is expected to achieve a 7.1% growth rate during fiscal year 2026-27, following a 7.8% expansion in the prior year. Future growth is projected at 6.5% in fiscal year 2027-28. Indonesia is forecast to grow 5.2% in 2026 and 5.1% in 2027. Mexico’s economy is estimated to increase by 1.5% this year and 1.8% in the following year.
Inflation in G20 Countries Rises Due to Energy Price Pressures
Inflation remains a significant challenge within the OECD outlook. Headline inflation across G20 nations is expected to reach 4.1% in 2026, up from 3.4% in 2025, before easing to 3.6% in 2027. Advanced G20 economies are projected to see inflation at 3.2% this year, decreasing to 2.6% in 2027. The United States rate is forecast to fall from 3.6% in 2026 to 2.6% in 2027. In the euro area, inflation is predicted to be 3.0% and 2.9%, respectively.
The OECD emphasized that rising energy costs have led to increased household expenses and renewed inflationary pressures in many economies. Long-term government bond yields have also grown as public borrowing and debt servicing costs escalate. OECD Secretary-General Mathias Cormann noted that while global growth has been more resilient than expected, the economy remains weaker compared to last year. The organization advocates for targeted, temporary financial support, sustainable public finances, and efforts to boost long-term productivity. It also recommends expanding skills, diversifying energy supplies, and promoting wider adoption of artificial intelligence.