Ankara:Global economic growth has faced significant challenges due to energy market shocks and the ongoing conflict in the Middle East, according to a report by the Organization for Economic Co-Operation and Development (OECD). Meanwhile, investment in artificial intelligence (AI) has supported trade.
According to Anadolu Agency, the OECD noted that global economic growth moderated to 2.6% in the first half of 2026, a decrease from 3.6% in the second half of 2025. This slowdown was largely attributed to a sharp decline in output in countries directly impacted by the Middle East conflict.
The reduction in energy supply from Gulf economies has led to increased consumer prices worldwide. However, China has played a role in stabilizing energy markets by cutting its energy imports and oil consumption. Despite the rising transportation costs, global merchandise trade has gradually recovered, with AI-related goods significantly boosting trade growth in Asian economies.
Additionally, EU natural gas stocks have reached their lowest levels for this time of year in over 15 years. The US government introduced new bilateral tariff rates for several countries in July, and headline inflation remained stable in June and July but rose in August across many G20 economies. Long-term sovereign bond yields have reached their highest levels in 15 years in most major advanced economies.
The OECD projected that global GDP growth will reach 2.9% in 2026 and 3% in 2027. The US economy is expected to grow by 2.2% in 2026 due to strong investment in AI. The euro area is projected to grow by 1% in both 2026 and 2027, while China's growth is expected to moderate to 4.5% in 2026 due to government policies. India, on the other hand, is projected to experience strong momentum with a 7.1% growth forecast for the current fiscal year, and T¼rkiye is projected to grow by 2.7% in 2026 despite facing inflationary pressures.
Concerns about global food commodity prices have risen due to severe weather events like El Nino. In response to underlying inflation pressures, many central banks have raised their policy interest rates. Governments globally are also confronting increasingly pressing fiscal challenges due to rising debt and defense spending.