EUROPE TO BE HIT HARDEST IN GLOBAL SLOWDOWN, SAYS OECD

The global economy should avoid a recession next year but the worst energy crisis since the 1970s will trigger a sharp slowdown, with Europe hit hardest, the OECD said, adding that fighting inflation should be policymakers’ top priority.
National outlooks vary widely, with the U.K.’s economy set to lag major peers, the Organisation for Economic Cooperation and Development said on Tuesday. It forecast that world economic growth would slow from 3.1% this year — slightly better than foreseen in September — to 2.2% next year, before accelerating to 2.7% in 2024.
“We are not predicting a recession, but we are certainly projecting a period of pronounced weakness, OECD head Mathias Cormann told a news conference on the organisation’s latest Economic Outlook.

The OECD said the global slowdown was hitting economies unevenly, with Europe bearing the brunt as Russia’s war in Ukraine hits business activity and drives up energy prices.
It forecast that the 19-country euro zone economy would grow 3.3% this year then slow to 0.5% in 2023 before recovering to expand by 1.4% in 2024. That was slightly better than the OECD’s September outlook, when it estimated 3.1% growth this year and 0.3% in 2023.
The U.S. economy was set to hold up better, with growth expected to slow from 1.8% this year to 0.5% in 2023 before rising to 1.0% in 2024.

SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB

Post Views: 33