OECD Lowers 2026 Global Economic Growth to 2.8 Pct

Paris, June 3 (Jiji Press)--The Organization for Economic Cooperation and Development on Wednesday lowered its global economic growth forecast for 2026 to 2.8 pct, down by 0.1 percentage point from its previous projection released in March.

The forecast is based on the assumption that crude oil prices, which have soared due to the conflict in the Middle East, will start declining from the middle of 2026, according to the OECD’s latest Economic Outlook report.

Still, the OECD noted that if the turmoil, such as the de facto blockade of the Strait of Hormuz, prolongs, the global economic growth would slow down to 2.1 pct.

Under an optimistic scenario, the Japanese economy is forecast to grow 0.6 pct in 2026, down 0.3 point from the previous report. “With the headwinds from the rising cost of energy imports, domestic demand will ease,” the report said, adding that export growth may also weaken.

Growth projections for the United States and the eurozone remained unchanged, at 2.0 pct and 0.8 pct, respectively. The OECD raised its forecasts for China to 4.5 pct and for India to 6.3 pct.

[Copyright The Jiji Press, Ltd.]