Permanent Delegation of the Republic of Korea to the Organisation for Economic Co-operation and Development (OECD)

▣︎ The OECD’s interim outlook report forecasts that the global economy will grow by 3.2% in both 2024 and 2025. Reflecting the recent global recovery, the growth forecast for this year has been raised by 0.1 percentage points from the previous estimate, while the outlook for 2025 remains unchanged. The OECD also slightly reduced Korea’s growth forecast by 0.1 percentage points to 2.5% for 2024, with the 2025 rate holding steady at 2.2%. Global inflation projections for 2024 and 2025 have been revised downward, by 0.5 and 0.3 percentage points, respectively. The report highlights several downside risks, including geopolitical conflicts, persistent inflation, and financial market volatility. On the upside, it points to the potential for a rapid rebound in consumer confidence and a further drop in oil prices. In its policy recommendations, the OECD advises that central banks’ policy rate cuts should continue, though monetary policy should remain prudent. On the fiscal side, the report stresses the need for stronger efforts to contain spending and enhance revenue, especially in light of long-term challenges such as aging populations and climate change. Finally, the OECD emphasizes the importance of structural reforms to promote competition in the goods and services markets, which would support sustained economic growth and ease longer-term fiscal pressures.