{
  "id": 9310690,
  "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-9310690",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-23T09:09:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today-freemalays",
    "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 OECD projects the global economy will expand modestly in 2026 and 2027, with the Middle East energy crisis and AI spending providing some relief. After growing 3.4% in 2025, the global economy is now expected to slow to 2.9% in 2026, slightly better than the 2.8% forecast in June. By 2027, growth is projected to pick up to 3.0%, down from the 3.1% June forecast. Strong spending on AI infrastructure, including data centers and semiconductors, has been a key pillar of economic resilience this year, boosting growth in the US and driving technology exports from Japan and South Korea. However, the OECD warns that global growth could be weighed down by energy market volatility, extreme weather from a strong El Niño, soaring bond yields, and underwhelming AI investment returns. If these risks materialize, they could collectively shave 0.7 percentage points off global growth next year and lift inflation by 1.1 percentage points. In the OECD's baseline scenario, G20 inflation is projected to reach 4.1% in 2026, up from 4.0% in June. By 2027, the OECD estimates inflation could climb to 3.6%, from 3.1% in June, potentially prompting central banks to adjust interest rates if inflationary pressures intensify or growth slows. In the US, the world's largest economy, growth is forecast at 2.2% in 2026 and 2.1% in 2027, both upgraded from June's estimates. This growth is driven by heavy AI-related investment, which offsets weaker consumer spending. US inflation is projected to sit at 3.6% in 2026 and ease to 2.6% in 2027, as tariffs and higher energy costs squeeze household purchasing power and business expenses. China's growth is expected to decelerate to 4.5% in 2026 and 4.2% in 2027, unchanged from June's forecast. Beijing's curbs on excess industrial capacity weigh on investment, while gradual consumption growth gains ground despite rising inflation. The Eurozone's growth is projected to stay flat at 1.0% in both 2026 and 2027, with higher energy prices and interest rates dampening activity before new defense spending initiatives provide support. Eurozone inflation is expected at 3.0% this year and 2.9% in 2027, fueled partly by a surge in natural gas prices as European storage levels hit 15-year lows ahead of the winter heating season. Japan's economy is projected to expand 0.8% in 2026 and 0.7% in 2027, with rising policy rates and costlier energy imports offsetting robust business investment. Unlike other major economies, Japan's inflation is forecast to accelerate to 2.6% in 2027 from 1.8% in 2026, driven by a tight labor market and strong wage growth. Canada's growth forecast for 2026 was revised down to 0.9% from 1.2% in June, and its 2027 outlook was lowered to 1.3% from 1.7% due to 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."
}