Global economic growth will slow from 3.1% in 2022 to 2.2% next year, recovering to 2.7% in 2024, according to the latest OECD forecasts published on Tuesday.
With the war in Ukraine in the background, “growth is at half mast, high inflation is persistent, confidence has eroded and uncertainty is high,” says the OECD (Organization for Economic Cooperation and Development) in the document .
“The world economy is experiencing its worst energy crisis since the 1970s,” according to OECD Chief Economist Álvaro Santos Pereira.
“The energy shock has brought inflation to levels not seen for several decades and is depressing growth around the world,” said the former economy minister.
Price increases are expected to average 8% this year in the G20 countries, which include the world’s major economies, before falling back to 5.5% in 2023 and 2024, according to the organization’s projections.
Santos Pereira explains that the most probable scenario predicted by the OECD “is not a global recession, but a sharp slowdown in the world economy in 2023, with inflation still high but falling in many countries.”
To overcome the crisis, the OECD, an organization of 38 developed and some emerging countries, pleads for “further tightening of monetary policy to combat inflation”, while saying that “budget support must be more targeted and temporary “.
“Accelerating investment to adopt and develop clean energy sources and technologies will be crucial to diversify supply and ensure energy security,” said the economist.
Source: TSF
