Page 6 - Policy Economic Report - December 2024
P. 6
POLICY AND ECONOMIC REPORT
OIL & GAS MARKET
Economy in Focus
1. A snapshot of the global economy
Global economic growth
According to Organization for Economic Co-operation and Development (OECD), global GDP growth is
projected to strengthen slightly to 3.3% in 2025 and remain stable at this level through 2026.
In OECD economies, GDP growth is projected to be modest relative to the pre-pandemic period, at 1.9%
in both 2025 and 2026.
In non-OECD economies, aggregate growth is also anticipated to remain broadly stable around its current
pace with emerging Asia continuing to be the biggest contributor to global growth.
Figure 1: Real GDP growth projections for 2024, 2025 and 2026 (y-o-y % change)
Source- OECD (Color coding for the years given above)
Growth prospects vary significantly across regions.
• GDP growth in the United States is projected to be 2.4% in 2025, before slowing to 2.1% in 2026.
• In the euro area, the recovery in real household incomes, tight labor markets and reductions in
policy interest rates continue to drive growth. Euro area GDP growth is projected at 1.3% in 2025
and 1.5% in 2026.
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