The Organisation for Economic Co-operation and Development has projected that India will remain the world’s fastest-growing major economy, with GDP growth estimated at 7.6 per cent for 2025–26, 6.1 per cent for 2026–27 and 6.4 per cent for 2027–28.
According to the OECD’s interim Economic Outlook report, cited by AIR news, the ongoing conflict in the Middle East is testing the resilience of the global economy, with disruptions to shipments through the Strait of Hormuz and damage to energy infrastructure leading to a surge in energy prices. The report stated that these developments have affected global supplies of energy and key commodities such as fertilisers, increasing costs, weighing on demand and adding to inflationary pressures.
The report further stated that China’s growth is expected to moderate from 5.0 per cent in 2025 to 4.4 per cent in 2026 and 4.3 per cent in 2027. It attributed the slowdown to the withdrawal of consumer subsidies, higher energy import costs, continued adjustments in the real estate sector and measures that are expected to dampen investment growth.
Globally, GDP growth is projected to remain broadly stable at 2.9 per cent in 2026 before rising marginally to 3 per cent in 2027, supported by strong technology-related investments and a gradual reduction in effective tariff rates. However, the OECD stated that the evolving Middle East conflict continues to weigh on growth prospects and introduces uncertainty around global demand.
The projections assume that the current disruption in energy markets will be temporary, with prices expected to ease from mid-2026 onwards, the report stated.
First Published on March 28, 2026, 16:39:52 IST
