{
  "id": 9309863,
  "title": "OECD expects AI boom to help offset Middle East energy shock for now",
  "url": "https://urgent.news/2026/09/23/oecd-expects-ai-boom-to-help-offset-middle-east-energy-shock-for-now-9309863",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-23T09:09:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/business/2026/09/23/oecd-expects-ai-boom-to-help-offset-middle-east-energy-shock-for-now"
  },
  "original_language": "en",
  "account": "The Organisation for Economic Co-operation and Development (OECD) expects the rapid investment in artificial intelligence (AI) infrastructure to temporarily cushion the global economy from the energy shock caused by the Middle East conflict, although the outlook for 2027 remains clouded. After a 3.4% growth in 2025, the global economy is now projected to decelerate to 2.9% growth in 2026, slightly higher than the 2.8% forecast in June by the OECD. Heading into 2027, the energy market volatility and inflation concerns are expected to dampen momentum, with the OECD predicting global growth to tick up to just 3.0% by the end of the year, down from 3.1% in June. While strong AI spending, such as for data centres and semiconductors, has bolstered growth in the US and stimulated technology exports from Japan and Korea, the OECD cautioned that the global outlook hinges on a series of risks, including energy market uncertainties, extreme weather linked to El Niño, soaring government bond yields, and underwhelming AI investment returns. Should these risks materialize, the OECD estimates they could collectively shave 0.7 percentage points off global growth next year and push inflation up by 1.1 percentage points. The OECD's baseline projection forecasts inflation at 4.1% in 2026, up from 4.0% in June, and raises its 2027 forecast to 3.6% from 3.1% in June. Central banks may need to recalibrate interest rates if price pressures intensify or growth falters. In the US, the world's largest economy, growth is anticipated at 2.2% this year and 2.1% in 2027, both upgrades from the June figures, as heavy AI-related investment compensates for weaker consumer spending. US inflation is projected to rise to 3.6% in 2026, before easing to 2.6% in 2027, as tariffs and higher energy prices squeeze household purchasing power and business expenses. China's growth is forecast to decelerate to 4.5% this year and 4.2% in 2027, unchanged from June, due to Beijing's curbs on overcapacity in industry, even as consumption gradually gains ground against rising inflation. The Eurozone's growth is expected to remain flat at 1.0% for both 2026 and 2027, pressured by higher energy prices and interest rates before new defense spending initiatives offer a rebound. Eurozone inflation is projected to stand at 3.0% this year and 2.9% in 2027, partly stemming from a surge in natural gas prices as European storage levels hit 15-year lows as the winter heating season approaches. Japan's economy is expected to expand 0.8% in 2026 and 0.7% in 2027, with surging policy rates and costlier energy imports balancing strong business investment. Unlike other major economies, Japan's inflation is projected to accelerate to 2.6% in 2027 from 1.8% this year, reflecting a tight labor market and robust wage growth. Canada's 2026 growth forecast was reduced from 1.2% to 0.9%, and its 2027 outlook was trimmed from 1.7% to 1.3%, due to the introduction of new US tariffs on Canadian exports.",
  "summary": "The global economy is set to slow to 2.9% in 2026, slightly better than the 2.8% forecast in June, says the Organisation for Economic Co-operation and Development (OECD).",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}