Despite initial fears of a steep global recession triggered by President Donald Trump’s trade war in April, the global economy demonstrated resilience in the past year. Global GDP is projected to grow by approximately 3% this year, matching the previous year’s performance, with low unemployment persisting almost everywhere and stockmarkets recording respectable gains.
The chief concern across the world’s most developed economies, however, remains inflation.
Inflation Above Central Bank Targets
Inflation across the OECD (Organisation for Economic Co-operation and Development) remains persistently above central banks’ typical 2% targets.
The focus is on core inflation, which excludes volatile food and energy prices to provide a clearer measure of underlying price pressures.
- Turkey ranks worst due to “crazy economic policies,” with its inflation rate “miles above” all other OECD countries.
- Estonia is the second worst, recording core inflation of nearly 7% in the third quarter of 2025 as it continues to recover from the 2022 energy shock.
- Britain’s core inflation rate has declined year-over-year but remains elevated at 4%, well above the Bank of England’s desired level.
Many other OECD nations are grappling with similar struggles to bring inflation back to target levels.