PARIS: The OECD raised its 2024 world economic growth forecast on Monday but warned that the Middle East conflict posed a risk, with disruptions in Red Sea shipping threatening to increase consumer prices.

The OECD now expects a 2.9 per cent expansion, up from 2.7pc in its previous forecast in November, as it sharply lifted the outlook for the United States, the world’s top economy.

Global growth “proved unexpectedly resilient” in 2023, reaching 3.1pc as inflation eased faster than anticipated, with strong growth in the United States and emerging markets offsetting slowdowns in European nations.

But indicators suggest “some moderation” of growth, with higher interest rates affecting the credit and housing markets while global trade remains subdued, according to the Organisation for Economic Cooperation and Development.

While inflation is falling in major economies, “it is too soon to be sure that underlying price pressures are fully contained”, the OECD added in an update to its annual economic outlook.

Published in Dawn, February 6th, 2024