The Organization for Economic Co-operation and Development (OECD) in a fresh report published on Tuesday improved its forecast for growth of global gross domestic product (GDP) in 2022 from 3% to 3.1%, with projected GDP growth in 2023 remaining at the same level of 2.2%
MOSCOW (Pakistan Point News / Sputnik - 22nd November, 2022) The Organization for Economic Co-operation and Development (OECD) in a fresh report published on Tuesday improved its forecast for growth of global gross domestic product (GDP) in 2022 from 3% to 3.1%, with projected GDP growth in 2023 remaining at the same level of 2.2%.
In its September outlook, the OECD projected that the world's GDP growth would total 3% this year and then decrease to 2.2% in 2023.
"Global GDP growth is projected to be 3.1% in 2022, around half the pace seen in 2021 during the rebound from the pandemic, and to slow further to 2.2% in 2023, well below the rate foreseen prior to the war. In 2024, global growth is projected to be 2.7%, helped by initial steps to ease policy interest rates in several countries," the message read.
The OECD also improved the forecast for the economy of the eurozone countries in 2022 from 3.1% in September to 3.3% in its latest November outlook.
At the same time, the organization mentioned issues that these countries will still have to face, including high inflation projected to stand at 8.3% and 6.8% in 2022 and 2023, respectively, with problems in the energy market being the key reason for this.
"European economies continue to face significant challenges from the current and planned embargos on Russian coal and seaborne oil imports, and from the dwindling supply of gas from Russia into the European market," the organization noted.
Asia is going to be the main engine of global economy growth in coming years, whereas Europe, South America and North America will show relatively low numbers, according to the organization.
The OECD also stated that the situation in the energy market would pose a significant threat to the economy in 2023-2024, as Europe would have a harder time replenishing its gas imports in coming years the way it is doing now. This, in turn, would lead to weaker growth and higher inflation, according to the OECD.
