OECD upwardly revises German economic forecast
Despite crises, OECD envisages a more pronounced economic upswing for Germany this year. Uncertainties remain nonetheless.
Paris (dpa/d.de) - The Organisation for Economic Co-operation and Development (OECD) expects a more pronounced economic upswing in Germany this year. The OECD’s latest Economic Outlook forecasts growth of 1.1 percent - 0.4 percentage points higher than was predicted in June. It also envisages a 1.1 percent increase for next year.
The OECD has likewise revised its forecasts for the Eurozone and the global economy this year slightly upwards. It now predicts growth of 1.0 and 2.9 percent respectively. Next year, it expects to see the Eurozone and global economy grow by 1.0 and 3.0 percent respectively.
Uncertainty due to conflicts, weather and the future of AI
Despite the negative impact of the conflict in the Middle East, growth remained robust in many countries in the first half of the year, reports the OECD. Sizeable oil inventories, supply from outside the Gulf states and state support measures apparently cushioned the blow of the conflict. Nonetheless, the outlook will depend to a considerable extent on whether a lasting solution is found to the conflict, says the OECD. It names tariffs, export caps and weather events such as El Niño as additional uncertainties. Furthermore, the OECD says that growth could be slowed if investments in artificial intelligence do not yield the expected returns.
