OECD raises international development forecast for 2023, lowers projection for 2024

The OECD forecast that a stronger-than-anticipated US economy would assist cushion the international slowdown this year. Having said that, it warns that the weakening of the Chinese economy will have a larger influence subsequent year. International gross domestic solution development is forecast to slow to three.% this year, compared to development of three.three% in 2020. The OECD also reduce its forecast for international development in 2024 to two.7%, from its prior estimates of two.9%. The organization expects the US economy to develop two.two% this year, compared to the prior forecast of 1.six%. Having said that, development is forecast to slow to 1.three% subsequent year. China’s economy is anticipated to slow from five.1% development this year to four.six% subsequent year. The OECD also downgraded the outlook for development in the euro zone, but forecast a choose-up in development subsequent year as Germany returns to development. In spite of weak development subsequent year, the OECD is recommending that central banks hold interest prices higher till inflationary pressures ease.