OECD raises US growth forecast for ’24, ’25

The US economy is projected to grow 2.6 per cent in 2024, before slowing to 1.8 per cent in 2025 as the economy adapts to high borrowing costs and moderating domestic demand, according a new growth forecast on Thursday.

“Real GDP is projected to grow by 2.6 per cent in 2024 and 1.8 per cent in 2025. Growth was strong in 2023 and is expected to continue at a fairly robust pace through 2024.” the Organisation for Economic Co-operation and Development (OECD) said in its semiannual Economic Outlook.

This marks an upward revision from OECD’s Interim Economic Outlook issued in February, in which the Paris-based organisation predicted the US economy to grow by 2.1 per cent in 2024 and by 1.7 per cent in 2025.

OECD’s latest report also indicates that world economic growth is projected to reach 3.2 per cent in 2025, a slight climb from the projected 3.1 per cent in 2024.