OECD: In 2024, global growth will slow to 2.7%

DNHN - According to OECD Chief Economist Clare Lombardelli, inflation continues to decline, but the global economy remains in a precarious state.

The Organisation for Economic Cooperation and Development (OECD) predicts that global growth will slow to 2.7% in 2024 following "below average" growth of 3% in 2023. This would be the lowest annual growth since the global financial crisis, except in 2020 - when the world was hit by the Covid-19 pandemic.

As previous interest rate hikes may have a greater impact than anticipated and inflation may persist, necessitating monetary tightening, the organization noted that forecasting risks tend to diminish. furthermore. The OECD considers China's economic difficulties to be the "primary threat" to global economic growth.

According to OECD Chief Economist Clare Lombardelli, inflation continues to decline, but the global economy remains in a precarious state. "We are facing the dual challenges of inflation and low growth," he said.

After a stronger-than-expected start to 2023 owing to falling energy prices and China's reopening, the OECD predicts that global growth will now moderate. The organization stated, "The impact of tightening monetary policy is becoming more apparent, business and consumer confidence is declining, and the recovery in China is also fading."

In light of the outlook for the region and other countries, the OECD reduced its growth forecast for the eurozone this year to 0.6% and for next year to 1.1%. They forecast a 0.2% contraction in Germany this year, making it the only G20 nation in recession (except Argentina).

The OECD has reduced its growth projections for China by 0.5 percentage points, to 5.1% in 2023 and 4.6% in 2024. The OECD noted that the growth of the world's leading economy could decline from 2.2% in 2023 to 1.3% in 2024, despite raising the US growth forecast.

Meanwhile, the OECD increased its growth forecast for Japan, the third largest economy in the world, by 0.5 percentage points to 1.8% in 2023, then reduced it to 1.0% in 2024.

Lan Anh (t/h)