OECD raises forecast: global economy will grow 2.9% in 2026, not 2.8%

WHAT HAPPENED

The OECD raised its global growth forecast from 2.8% to 2.9% for 2026 and expects 3% in 2027. The United States would grow 2.2%; China, 4.5% this year and 4.2% in 2027; the eurozone, 1%.

WHY IT MATTERS

The economy resisted better than expected despite expensive oil due to the war in the Middle East. Investment in artificial intelligence, data centers, and chips drives technology, while transportation, manufacturing, and fuel-using businesses face higher costs.

AND FOR YOUR PORTFOLIO

For long-term investments, the outlook is mixed: technology and chips maintain investment and hiring, but expensive energy pressures transportation and manufacturing. If the United States and China grow, they can also benefit the demand for exports from Mexico, Brazil, and India.