The world economy, teetering by high interest rates, soaring inflation and Russia’s war against Ukraine, is expected to improve only modestly this year and slow down in 2023.
Tuesday’s dismal forecast (22/11) was presented by the Paris-based Organization for Economic Co-operation and Development (OECD).
Mathias Cormann, Secretary General of the OECD said, “It is a clear statement that the global economy will continue to face tough challenges. Unprovoked and illegal Russian aggression continues to rage. Global growth is slowing and will continue to slow, confidence is weakening. Inflation is more widespread and consistent, as a result central banks are increasing policy interest rates and the global financial situation is becoming increasingly unfavorable.”
The OECD predicts the world economy will grow only 3.1 percent this year, down sharply from a robust 5.9 percent growth in 2021.
OECD estimates that next year the situation will be even worse where the world economy will only grow 2.2 percent.
The OECD, which consists of 38 member countries, works together to promote international trade and prosperity and publishes regular reports and analysis. [my/em]