OECD boosts world progress forecast for 2023, trims 2024 projection

The OECD has forecasted {that a} stronger-than-expected US economic system will assist to mitigate a world slowdown this 12 months. Nonetheless, it warned {that a} weakening Chinese language economic system would have a bigger influence subsequent 12 months. World gross home product progress is projected to sluggish to three.0% this 12 months, in comparison with 3.3% progress in 2020. The OECD additionally downgraded its forecast for world progress in 2024 to 2.7%, from its earlier estimate of two.9%. The group expects the US economic system to develop 2.2% this 12 months, up from its earlier forecast of 1.6%. Nonetheless, it predicts that progress will sluggish to 1.3% subsequent 12 months. The Chinese language economic system is anticipated to sluggish from 5.1% progress this 12 months to 4.6% subsequent 12 months. The OECD additionally lower its progress outlook for the euro zone, however forecasted a pick-up in progress subsequent 12 months as Germany returns to progress. Regardless of weak progress subsequent 12 months, the OECD recommends that central banks preserve rates of interest excessive till inflationary pressures ease.

By Editor