ID :
667642
Wed, 09/20/2023 - 02:39
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https://www.oananews.org//node/667642
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OECD Revises Down 2024 Global Economic Growth Forecast
In its latest Economic Outlook report, the OECD said the world economy is expected to expand 2.7 pct in 2024, down 0.2 percentage point from its projection as of June. Meanwhile, the OECD raised its 2023 global growth forecast to 3.0 pct.
The OECD lowered its 2024 forecast for China by 0.5 point to 4.6 pct growth due chiefly to its real estate woes and deterioration in business sentiment among consumers.
The 2023 growth forecast for Japan was raised by 0.5 point to 1.8 pct.
"Japan is the only advanced economy in the G-20 without any increase in policy interest rates so far," the OECD said, referring to the Group of 20 advanced and emerging economies.
"Improving wage growth and strong service exports are expected to help boost GDP (gross domestic product) growth," the organization added.
Meanwhile, the OECD cut its 2024 growth forecast for Japan to 1.0 pct. The year's core inflation projection for the country was put at 2.1 pct.
The OECD kept intact its 2024 core inflation projection for the United States, which has carried out a series of interest rate hikes, at 2.6 pct. Its economic growth forecast for the country was raised to 1.3 pct, but it is lower than this year's forecast of 2.2 pct.
The economic growth forecast for the eurozone in 2024 was cut 0.4 point to 1.1 pct following interest rate hikes. Growth forecasts for Germany and France were also revised down.
"Uncertainty about the strength and speed of monetary policy transmission and the persistence of inflation are key concerns," the OECD said.
"The adverse effects of higher interest rates could prove stronger than expected, and greater inflation persistence would require additional policy tightening that might expose financial vulnerabilities," the organization added.
