The Organisation for Economic Co-operation and Development (OECD) has forecast that the global economic growth rate for next year will slow down more than initially expected.
In its interim economic outlook report released on the 19th (local time), the OECD projected the global economic growth rate for 2024 to be 2.7%, down 0.2 percentage points from its June forecast.
This figure is lower than the OECD's projected economic growth rate for this year, which stands at 3.0%.
The OECD stated, "Global GDP growth rates for this year and next are expected to remain low due to macroeconomic policy tightening aimed at curbing inflation."
In particular, it predicted that the economic growth rates of the two major pillars of the global economy, the United States and China, will slow down further next year compared to this year.
For the United States, growth is expected to slow from 2.2% this year to 1.3% next year due to reduced demand caused by fiscal tightening.
China's economic growth rate is projected to rise to 5.1% this year, up from 3.0% last year, as economic activities resumed following the With-Corona policy. However, next year it is expected to decline to 4.6% due to a combination of domestic demand stagnation and a downturn in the real estate market.
Global inflation rates are expected to ease somewhat this year and next, influenced by falling prices of oil, gas, and coal.
The inflation rate for the G20 is forecast to drop from 7.8% last year to 6% this year and 4.8% next year, while the Eurozone inflation rate is also expected to fall from 8.4% last year to 5.5% this year and 3.0% next year.
However, the OECD noted that core inflation rates, excluding food and energy prices, have not yet decisively declined and recommended that countries maintain tight monetary policies.
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