Illustrative image (Photo: AFP/VNA)

"Cautious optimism has begun to take hold in the global economy, despite modest growth and the persistent shadow of geopolitical risks," the OECD said in its latest quarterly report.  But it noted that "this recovery is unfolding differently across regions" and "the mixed macroeconomic landscape is expected to persist, with inflation and interest rates declining at differing paces, and differing needs for fiscal consolidation."

The US economy is now expected to expand 2.6% in 2024. The OECD also raised its forecast for China, to 4.9% from 4.7% previously, and expected timid growth of 0.7%in the eurozone.

The OECD warned that "high geopolitical tensions, particularly in the Middle East, could disrupt energy and financial markets, causing inflation to spike and growth to falter".