Despite the continued impact of the war in the Gulf region on the economy, the Organisation for Economic Co-operation and Development (OECD) has slightly raised its growth forecasts for Germany and the global economy. In its latest forecast published on Wednesday, the OECD expects the German economy to grow by 1.1 percent in each of the next two years. For 2026, this represents an increase of 0.4 percentage points compared with the organisation’s previous forecast from June.
For the European Union as a whole, the OECD expects economic growth of 1.0 percent this year, which is 0.2 percentage points higher than previously forecast. Worldwide, the experts raised their forecast for economic growth next year by 0.1 percentage points to 2.9 percent.
Overall, the global economy is being affected by rising energy prices resulting from conflicts in the Gulf region, as well as by extreme weather events, the OECD said. “The global economic outlook continues to depend heavily on whether a lasting solution to the conflict in the Gulf region is achieved.”
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