Global gross domestic product (GDP) growth is projected to ease to 2.9 percent in 2024 from 3.1 percent in 2023, before recovering to 3.0 percent in 2025 as financial conditions ease, according to the outlook released Monday by the Organization for Economic Cooperation and Development (OECD).

The report concluded that Asia is likely to continue its role as the major contributor to the global growth in 2024 and 2025, as it has been in the past year.

According to the report, high geopolitical tensions are a significant near-term risk to activity and inflation, particularly if the conflict in the Middle East were to disrupt energy markets.

Attacks on ships in the Red Sea have raised shipping costs sharply and lengthened delivery times, disrupting production schedules and raising price pressures.