OECD lifts 2026 growth forecast on AI gains, energy resilience

The 27-member OECD upgraded its 2026 global growth forecast to 2.9% from a 2.8% projection issued in June, signalling that expected advances in artificial intelligence may help shield the world economy from energy market volatility stemming from Middle East tensions.

The Paris-based organisation's revised assessment suggests AI-driven productivity gains could provide sufficient economic stimulus to absorb near-term energy shocks, at least temporarily. However, the overall growth forecast remains subdued compared to pre-pandemic trends, underscoring persistent headwinds facing major economies.

The OECD's analysis reflects growing recognition among policymakers that technological innovation may help mitigate economic risks from geopolitical disruptions. Yet economists caution that the benefits of AI deployment remain unevenly distributed globally, with advanced economies positioned to capture larger gains than developing nations.

The outlook carries implications for Malaysia and other Southeast Asian economies, which face exposure to both energy price fluctuations and competition from AI-driven productivity shifts in manufacturing and services sectors. Regional policymakers are increasingly focused on positioning their economies to benefit from artificial intelligence adoption while managing transition risks.