OECD forecasts ‘long road’ for global economic recovery

The Paris-based organization foresaw economic expansion of 2.7%, up from 2.6% in its last report in March.

Despite the improvement, the latest report noted that this was still “the lowest annual rate since the global financial crisis, with the exception of the 2020 pandemic period.”

“This projected recovery, while almost unchanged from our interim projections in March, maintains the slightly more optimistic outlook that had been predicted and which we are now seeing materialize,” OECD Secretary-General Mathias Cormann said.

Core inflation, which does not include volatile energy and food prices, is higher than previously expected. The OECD said this may force central banks, which have already increased interest rates to try to tame consumer prices, to make further hikes to borrowing costs.