High-interest rates and inflation will result in a growth of only 3.1% this year
A new forecast by the the Paris-based Organization for Economic Cooperation and Development (OECD) expects the growth of the global economy to slow down in 2022. According to a report by the Associated Press, the OECD made the announcement on Tuesday, November 22, stating that high interest rates, increasing inflation rates along with the Russian was in Ukraine are to be blamed for the slow global growth rate.
The OECD estimates the world economy to grow by only 3.1% this year, which is a sharp decline from 5.9% in 2021, the report adds. The predictions for 2023 are even worse, the report said, as according to the OCED, world economy is expected to expand by only 2.2%.
A statement by Mathias Cormann, OECD Secretary-General, said “It is true we are not predicting a global recession, But this is a very, very challenging outlook, and I don’t think that anyone will take great comfort from the projection of 2.2% global growth”.
The organisation also predicts the U.S economy to grow at just 1.8% this year.
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