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ReedKnapp — Research & Advisory

OECD Economic Outlook - 2026

The OECD nudged its 2026 forecast up to 2.9%, crediting resilience.  The buffers behind that number: oil stockpiles, AI investments and access to credit remain fragile. 

2.9%

Growth forecast for 2026

Global & G20

Coverage

Middle East, El Nino, AI

Risks

Twice-yearly projections for the world economy and all G20 nations, published 23 September 2026.

OECD Economic Outlook, Interim Report - September 2026

OECD

Why It Matters

The headline number is better than feared, but it doesn’t guarantee conditions will improve.  The US is tracking at 2.2%, and China is at 4.5% (unchanged), but G20 inflation is running at 4.1%.  Government borrowing costs are rising, with Germany and France at multi-year highs. This narrows the room policymakers have to respond to future shocks.  The OECD has flagged several risks, including a prolonged conflict in the Middle East, a strong El Niño hitting harvests and AI investment risks.

 

Effective risk management and mitigation will be key to success.

Broad coverage

Global

Economies

All

Sectors

Three
Risks

Global coverage

What the findings suggest:

Global threats continue to impose costs and risks on businesses.  Building resilience against a continued conflict in the Middle East, the impacts of a strong El Niño, and ensuring AI benefits are being achieved while managing their risks is the path to success.

Australian businesses face heightened uncertainty and slower growth. Winning is this environment will require greater focus on cost management to deliver results. Big growth plays are out; disciplined execution is in.

Three implications

1

Manage for slower growth – the cost of living challenges, declining real wages, and debt levels will make customers more selective.

2

Improve cost management – there is growth potential on the bottonline for companies that effectively manage down their cost base.  AI can play a role.

3

Understand and proactively manage risk. – The heightened levels of uncertainty and risk requires a new level of focus.  Firms that get this right will become stronger and more competitive. 

Our Take

This twice-yearly OECD outlook reaffirms what businesses are seeing in their markets.  Growth has been mixed across sectors but remains mostly resilient. However, the threats remain.  Higher energy prices, supply chain disruptions, weather events and AI will require steely resolve.  The companies that best manage these risks will succeed.  AI is a double-edged sword of opportunity and threat.  Do better than your competitors in this space to create a competitive advantage.

Attribution

This is ReedKnapp’s independent commentary on a third-party study ––”OECD Economic Outlook, Interim Report – September 2026″, the work of the OECD.

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What to ask now

Do we have plans to deal with an extended conflict in the Middle East?

Are we exposed to El Nino impacts on harvests?

Are we getting value from AI while managing risk? 

What to ask now

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