OECD: Global economic growth to slow this year amid Middle East conflict

The Organization for Economic Co-operation and Development (OECD) forecasts a significant slowdown in global economic growth for the current year, projecting it to reach 2.1%, with a further dip to 1.8% next year. This pessimistic outlook is heavily influenced by the escalating and prolonged conflict in the Middle East, which is expected to increase economic and social costs.

For Lithuania, the OECD predicts a moderation in economic expansion, with growth estimated at 2.8% this year, down from previous forecasts. The situation is expected to become more pronounced by 2027, with growth potentially falling to 1.9%. These revised figures reflect concerns over rising energy costs and global trade uncertainties.

In contrast, the United States economy is anticipated to show resilience, with growth around 2% this year, bolstered by substantial investments in artificial intelligence. However, growth is expected to moderate to 1.8% by 2027. The Eurozone's economy is projected to grow by 0.8% this year, with an anticipated increase to 1.2% next year, supported by domestic demand and trade growth.

Germany's economic growth is forecast at 0.7% this year and 1.1% in 2027, with both projections revised downward due to rising energy costs. The country's export-oriented industry faces headwinds from increasing global trade tensions. China's economy is expected to grow by 4.5% this year, slightly decreasing to 4.3% by 2027, though its large energy consumption and import reliance make it vulnerable to oil price fluctuations, a risk partially mitigated by renewable energy use and strategic reserves.