OECD upgrades global economic outlook, and other economics stories to read

The global economy is growing faster than expected, largely thanks to a resilient US economy and inflation slowing more quickly than predicted, the OECD said on 2 May, as it updated its economic outlook.

World growth in 2024 is expected to keep up with the 3.1% growth rate reported last year, rising to 3.2% in 2025. This upgrades the OECD's previous forecasts in February for 2.9% this year and 3% the next.

“The global economy has proved resilient, inflation has declined within sight of central bank targets, and risks to the outlook are becoming more balanced. We expect steady global growth for 2024 and 2025, though growth is projected to remain below its longer-run average,” OECD Secretary-General Mathias Cormann said.

“Policy action needs to ensure macroeconomic stability and improve medium-term growth prospects. Monetary policy should remain prudent, with scope to lower policy interest rates as inflation declines, fiscal policy needs to address rising pressures to debt sustainability, and policy reforms should boost innovation, investment and opportunities in the labour market particularly for women, young people and older workers.”

New data shows the Eurozone economy bounced back in the first quarter from a mild recession, with Germany returning to growth and expansion accelerating in other economies. Inflation also continued to ease steadily.

The bloc's gross domestic product (GDP) rose by 0.3% quarter-on-quarter from January to March, a 0.5% increase year-on-year.

Fourth-quarter GDP for 2023 was also revised down from 0.0% to -0.1%. This means the Eurozone was in a technical recession in the second half of last year, as GDP shrank 0.1% in the third quarter.

Figures released by the European Union's statistics office Eurostat indicated economic growth across the 10 countries used to calculate the flash estimate for the bloc.

China’s manufacturing and services growth slowed in April, following sizeable increases in March.

Canadian manufacturing activity slowed in April amid a fall in output and new orders. It follows a year of contraction in the sector.

South Korea’s exports rose for the seventh consecutive month in April amid increasing demand for chips and record automobile sales.

Indian infrastructure output increased by 5.2% year-on-year in March, with output in the previous financial year also rising 7.5% year-on-year.

Brazil’s unemployment rate stood at 7.9% in the first quarter of the year, making it the lowest for the January-March period since 2014.

Inflation in Thailand registered its first monthly increase since September, rising 0.2% in April.

Mexico received fewer remittances than expected in March, Bloomberg reports. Total remittances dropped to $5.02 billion – a decline of 3% compared to a year earlier.

US consumer confidence fell in April, dropping to its lowest level since July 2022.

Zimbabwe has introduced a new gold-backed currency to tackle high inflation.

The World Economic Forum’s Special Meeting on Global Collaboration, Growth and Energy was held in Saudi Arabia earlier this week. Here are the key takeaways from the event.

A new partnership between Africa and Gulf countries is emerging. With investment projects in Africa worth more than $53 billion last year, the value of economic relations is only expected to grow.

Economies are facing a complicated and unpredictable geopolitical and geoeconomic environment. Here, Saadia Zahidi, Managing Director at the World Economic Forum, explores how we can restart economic growth using a model that works for all.