Page 7 - Policy Economic Report - December 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• Growth in Japan is projected to expand by 1.5% in 2025 but then decline to 0.6% in 2026.

• China is expected to continue to slow, with GDP growth of 4.7% in 2025 and 4.4% in 2026.

Global Inflation

Inflation in the OECD is expected to ease further, from 5.4% in 2024 to 3.8% in 2025 and 3.0% in 2026,
supported by the still restrictive stance of monetary policy in most countries.

Headline inflation has already returned to central bank targets in nearly half of the advanced economies
and close to 60% of emerging market economies. It has continued to ease in most countries through 2024,
led by further falls in food, energy, and goods price inflation.

However, services price inflation is still proving persistent, and was approximately 4% in the median OECD
economy in September.

Looking ahead, OECD projects annual consumer price inflation in the G20 countries to decline further and,
by the end of 2025 or early 2026, inflation is projected to be back to target in almost all remaining major
economies.

Figure 2: Headline inflation projections for 2024, 2025 and 2026 (%, year-on-year)

Source- OECD (Color coding for the years given above)

Global PMI

• The J.P.Morgan Global PMI Composite Output Index - produced by S&P Global - registered 52.4 in
November, up from 52.3 in October. The latest reading signaled that the rate of global growth
accelerated to a three-month high and is consistent with the global economy growth rate.

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