The Organisation for Economic Co-operation and Development (OECD) has released its latest projections, indicating a moderate rebound for China’s economy in the coming years. As nations worldwide continue to navigate their post-pandemic recovery paths, China is poised to be a significant player in the global economic landscape.
Despite facing uneven growth rates across different regions and persistent high inflation, the OECD’s interim economic outlook reveals that global GDP is set to rise by 2.9 percent in 2024, a slight increase of 0.2 percentage points from its November forecast. This growth is expected to continue, reaching 3 percent in 2025.
Asia remains at the forefront of global economic expansion, accounting for the majority of growth in both 2024 and 2025. China, in particular, is projected to rank among the top three growing economies during this period, highlighting its pivotal role in driving regional and global markets.
In addition to China, the second-largest economy is anticipated to grow by 4.7 percent in 2024, tapering to a 4.2 percent growth rate in 2025. In contrast, the United States is expected to see growth rates of 2.1 percent in 2024 and 1.7 percent in 2025, buoyed by sustained consumer spending and more accessible financial conditions.
The euro area faces a more subdued growth trajectory, with rates projected at 0.6 percent in 2024 and 1.3 percent in 2025, amidst tight credit conditions. However, an improvement is forecasted as real incomes strengthen over time.
OECD Secretary-General Mathias Cormann emphasized the global economy's resilience in the face of high inflation and stringent monetary policies over the past two years. He underscored the need for prudent monetary strategies, suggesting that central banks may consider reducing interest rates if inflation rates continue to decline.
\"Fiscal policy should rebuild fiscal space through stronger efforts to contain spending growth. In parallel, we need to work together to reinvigorate trade, improve supply chain resilience, and tackle shared challenges, in particular climate change,\" Cormann stated.
Reference(s):
cgtn.com
