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Global economic growth remained resilient in 2024. However, recent indicators suggest softening growth prospects, with measures of economic policy uncertainty having risen markedly alongside the imposition of new trade barriers by a number of countries. Global growth is expected to moderate over the coming two years and to be weaker than previously expected, with inflation now remaining above target for longer in many economies. Key risks include broader increases in trade barriers that would further hit global growth and raise inflation, or disruptive repricing in financial markets if growth slows more sharply than expected. On the upside, any agreement that lowers tariffs from current levels or increased debt-financed government spending on areas such as defence could result in stronger near-term growth.The Interim Report says that international cooperation is especially important at the current juncture to prevent a costly ratcheting up of trade barriers. To support economic growth, policy interest rates could be lowered further in countries where underlying inflation is projected to moderate or remain subdued, provided inflation expectations remain well anchored. Further fiscal efforts to contain spending, enhance revenues and improve budgetary frameworks would enable governments to react to future shocks and accommodate future spending pressures. Headwinds from trade pressures reinforce the need to reinvigorate domestic policy reforms that strengthen productivity.The Interim Report is an update on the assessment in the December 2024 issue of the OECD Economic Outlook (Volume 2024 Issue 2).Learn more
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This new web format for Environment at a Glance Indicators provides real-time interactive on-line access to the latest comparable OECD-country data on the environment from the OECD Core Set of Environmental Indicators – a tool to evaluate environmental performance in countries and to track the course towards sustainable development.Learn more
