OECD modestly raises global economic outlook

The OECD has released an updated forecast indicating a slight increase in the global economy’s growth expectations, going from 3.1% to 3.2% for 2024, and remaining stable at 3.2% for 2025. Despite robust global production growth and a declining inflation trend, the distribution is uneven, with markets significant to Danish exporters, particularly in Europe, experiencing more muted growth. Allan Sørensen, chief economist at Danish Industry, deems the growth above three percent as acceptable but unremarkable. Challenges are underscored by the German economy, which retracted by 0.1% in 2023 and is only expected to grow by 0.1% in 2024. The dismal economic sentiment in Germany is of particular concern for Danish export companies. In contrast, the OECD forecasts a 1% growth for the German economy in 2025, and a gradual increase for the Eurozone with 0.7% growth in 2024 and 1.3% in 2025, which is slightly less than previously expected.