China's economy is set to experience a moderate rebound this year as countries globally continue to find their own footing, according to the latest projections from the Organisation for Economic Co-operation and Development (OECD).

Despite the uneven pace of growth across different countries and regions and persistently high inflation rates, the report said global growth was "holding up," according to the latest interim economic outlook by the OECD released on Monday.

It projected an increase in global GDP by 2.9 percent in 2024, 0.2 percentage point higher than its November projection. Global growth is expected to slightly improve to 3 percent in 2025.

Asia is expected to continue to account for the bulk of global growth in 2024 and 2025, as it did in 2023, according to OECD. In terms of OECD's projected growth rate, China is expected to among the top three countries globally in 2024 and 2025.

Meanwhile, the second-largest economy in the world is expected to grow by 4.7 percent in 2024 before slightly decelerating to a 4.2 percent growth rate in 2025. 

In contrast, the U.S. is projected to see growth rates of 2.1 percent in 2024 and 1.7 percent in 2025, helped by consumers continuing to spend savings built up during the COVID-19 pandemic and easier financial conditions.

The euro area is expected to experience subdued activity in the near term with growth rates of 0.6 percent in 2024 and 1.3 percent in 2025, amid tight credit conditions, with a forecasted improvement as real incomes strengthen.

OECD Secretary-General Mathias Cormann highlighted the global economy's resilience amid the challenges of high inflation and the tightening of monetary policies over the past two years. He stressed the importance of prudent monetary policies, suggesting that central banks could start reducing interest rates this year if inflation continues to decline.

"Fiscal policy should rebuild fiscal space, through stronger efforts to contain spending growth. In parallel, we need to work together to reinvigorate trade, improve supply chain resilience, and tackle shared challenges, in particular climate change," said Cormann.

(Cover via CFP)