Global growth to slow to 3.1% in 2022, 2.2% in 2023: OECD
World growth is set to slide from 3.1 percent this year to 2.2 percent next year, before rebounding slightly to 2.7 percent in 2024, the Organization for Economic Cooperation and Development (OECD) said Tuesday in its latest Economic Outlook.
The organization cited tighter monetary policy, higher real interest rates, soaring energy prices, weak real household income growth and declining confidence as the main factors to hindering growth.
"The United States and Europe are slowing sharply," said the report. The OECD projected the U.S. economy would grow 1.8 percent in 2022, 0.5 percent in 2023, and 1 percent in 2024. Meanwhile, eurozone economic growth would slow from 3.3 percent this year to only 0.5 percent in 2023, and climb back to 1.4 percent in 2024.
By 2023, Asia's major emerging-market economies will account for nearly three-quarters of global GDP growth, said the OECD.
The OECD noted that Russia-Ukraine conflict has pushed up energy and food prices and intensified inflationary pressures. As a result, it expects its member countries' inflation rate will be 9.4 percent in 2022, and slow down to 6.6 percent in 2023 and 5.1 percent in 2024, as a result of "tighter monetary policy and decelerating growth."