The Organisation for Economic Co-operation and Development (OECD) said that global growth is set to slow to 3.1% in 2022 and fall even further to 2.2% in 2023
The OECD stressed that “uncertainty about the outlook is high” and the risks have become “more skewed to the downside and more acute” but the global economy should avoid a recession next year
“We are not predicting a recession, but we are certainly projecting a period of pronounced weakness, OECD head Mathias Cormann told a news conference to present the organisation’s latest Economic Outlook.
“Global financial conditions have tightened significantly, amidst the unusually vigorous and widespread steps to raise policy interest rates by central banks in recent months, weighing on interest-sensitive spending and adding to the pressures faced by many emerging-market economies,” the Paris-based organisation said in its Economic Outlook report.
The economic growth in the United States is expected to drop from 5.3% in 2021 to 1.8% this year, while Eurozone’s GDP growth is set to fall from 5.3% last year to 3.3% in 2022 and then slow to 0.5% in 2023. Outside the euro zone, the British economy was seen shrinking 0.4% next year as it contends with rising interest rates, surging inflation and weak confidence
In China, which is not an OECD member, growth is seen tumbling to 3.3% from 8.1% in 2021.