Strong AI-driven investment, production and trade are helping cushion the global economy from the energy shock caused by the West Asia conflict, while global growth remains resilient
The global economy has remained resilient despite the energy shock triggered by the ongoing West Asia conflict, with strong artificial intelligence (AI)-related activity helping cushion the impact, the Organisation for Economic Cooperation and Development (OECD) said on Wednesday.
According to the OECD, continued strength in AI-related activity has boosted investment, production and trade, helping offset some of the economic damage from higher energy prices and supply disruptions caused by the conflict.
“Sizeable oil inventories, additional supply from outside the Gulf economies and discretionary government support measures all helped to cushion the impact on the global economy. Continued strong AI-related activity also bolstered investment, production and trade,” the OECD said.
The Paris-based organisation expects global GDP growth to remain around 2.9 per cent in 2026 before edging up to 3 per cent in 2027. However, the OECD expects growth momentum to soften in the near term as higher commodity prices push up inflation and monetary policy remains restrictive across several economies.
The organisation said the recent surge in energy and commodity prices is expected to put upward pressure on inflation in the near term. However, inflationary pressures are expected to ease in 2027 as energy prices soften and the impact of the initial commodity shock fades.
More from BusinessFor the G20 economies, headline inflation is projected to decline from 4.1 per cent in 2026 to 3.6 per cent in 2027, according to the OECD. Core inflation across most advanced economies is also expected to moderate, falling from 2.7 per cent to 2.5 per cent in 2027.
The OECD expects the combination of continued AI-related investment and easing energy prices to provide greater support to economic activity next year.
The AI boom has emerged as an important source of investment and productivity momentum, particularly as economies grapple with geopolitical uncertainty, trade disruptions and higher energy costs.
Still, the outlook remains exposed to risks from the West Asia conflict, commodity prices and persistent inflation. A prolonged energy shock could weigh on household purchasing power, corporate costs and global trade. For now, however, the OECD’s assessment suggests that strong AI investment and relatively resilient global activity are helping the world economy absorb the shock from the energy crisis.
