World economy expected to grow by 3.0% this year, before slowing down to 2.7% next year, says Paris-based organization
The Organization for Economic Cooperation and Development (OECD) on Tuesday raised its world economic growth forecast for 2023, but lowered it for 2024.
The world economy is expected to grow by 3.0% this year, said the Paris-based organization in its September global economic outlook report. This was 0.3 percentage point upward from the previous projection in June.
The global gross domestic product (GDP) growth is foreseen to come in at 2.7% next year, revised downward by 0.2 points.
“With monetary policy becoming increasingly visible and a weaker-than-expected recovery in China, global growth in 2024 is projected to be lower than in 2023,”the OECD said.
The GDP in the US is expected to increase 2.2% this year, revised upward by 0.6 points. The growth is expected to slow to 1.3% in 2024 as tighter financial conditions soften demand pressures.
The OECD cut China’s growth forecast by 0.3 points to 5.1% for 2023 and 0.5 points to 4.6% for next year, led by subdued domestic demand and structural stresses in property markets.
The OECD forecast eurozone GDP growth to ease to 0.6% in 2023, and edge up to 1.1% in 2024 as the adverse impact of high inflation on real incomes fades.
It stressed that the headline inflation continued to decrease while core inflation –excluding the most volatile components, energy and food – remained persistent, led by the services sector and tight labor markets.
Inflation in the G-20 is projected to ease to 6% this year and 4.8% next year, with core inflation in the G-20 advanced economies declining from 4.3% in 2023 to 2.8% in 2024.