OECD Forecasts Global Economy Growth Of 2.7% In 2023

The Organization for Economic Co-operation and Development (OECD) has revised its global economic growth forecast for 2023 slightly upwards to 2.7% from 2.6% projected in the March report

MOSCOW (UrduPoint News / Sputnik - 07th June, 2023) The Organization for Economic Co-operation and Development (OECD) has revised its global economic growth forecast for 2023 slightly upwards to 2.7% from 2.6% projected in the March report.

"We project global growth to be 2.7% in 2023, with a modest pick-up to 2.9% in 2024 - both well below the average growth rate in the decade preceding the COVID-19 pandemic," OECD Chief Economist Clare Lombardelli wrote in Economic Outlook's June edition.

The Paris-based organization said the economy was turning a corner but warned that growth would remain weak by its past standards. Most countries are still grappling with runaway inflation and high energy prices, despite easing supply bottlenecks and the reopening of China's economy.

China is expected to see the sharpest positive shift in growth between 2022 and 2023 of any G20 economy.

Its economy is projected to rise to 5.4% in 2023 before easing to 5.1% in 2024 as the rebound associated with reopening fades.

The United States will also see a modest growth of 1.6% in 2023 and 1.0% in 2024 on the back of the lagged effects of its tight monetary policy. In the euro area, where underlying inflation is still elevated, growth is projected to be 0.9% in 2023, up from 0.8% forecast in the March report, while the outlook for 2024 remains at 1.5%.

The 38-nation OECD predicted that the Russian economy will shrink by 1.5% in 2023, down from -2.5% projected previously, and will slow down by a further 0.4% year-on-year in 2024 from -0.5% forecast in March.