Page 7 - Policy Economic Report_Mar'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Global GDP growth is projected to moderate from 3.2% in 2024, to 3.1% in 2025 and 3.0% in 2026, with
higher trade barriers in several G20 economies and increased geopolitical and policy uncertainty
weighing on investment and household spending.

Figure 2: Global GDP growth

Source- OECD Interim Economic Outlook

Annual GDP growth in the United States is projected to slow from its strong recent pace, to be 2.2% in
2025 and 1.6% in 2026. Euro area GDP growth is projected to be 1.0% in 2025 and 1.2% in 2026, as
heightened uncertainty keeps growth subdued. Growth in China is projected to slow from 4.8% this year
to 4.4% in 2026.

In Japan, robust corporate profits and strong wage growth are expected to be a tailwind for economic
activity this year, with growth projected to rise from 0.1% in 2024 to 1.1% in 2025 before slowing to
0.2% in 2026.

In India, GDP growth is projected to be 6.4% in FY 2024-25 and 6.6% in FY 2025-26, while Indonesia is
projected to grow by 4.9% in 2025 and 5.0% in 2026. The expansion in Brazil is expected to slow from its
recent rapid pace as the impact of monetary policy tightening and higher tariff rates on steel and
aluminum exports to the United States dampen growth from 3.4% in 2024 to 2.1% in 2025 and 1.4% in
2026.

Global Inflation

According to OECD, inflation is projected to be higher than previously expected, although still
moderating as economic growth softens. Headline inflation is projected to fall from 5.3% in 2024 to
3.8% in 2025 and 3.2% in 2026 in the G20 economies.

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