OECD Expects Global Economy to Slow Down with Europe Hitting the Hardest by Energy Crisis

The Organisation for Economic Cooperation and Development (OECD) stated that global economic expansion is expected to decelerate next year before bouncing back in 2024.

OECD wrote in the latest Economic Outlook, stating that the global economy should avoid a recession next year as the global slowdown was hitting economies unevenly.

European countries are the most concerned from an OECD perspective, being the hardest hit by the worst energy crisis since the 1970s that will trigger a slowdown. The Eurozone economy is expected to slow down from .3% growth this year to 0.5% in 2023 before recovering to expand by 1.4% in 2024.

Amid this grim outlook that the global economy is on a brink of recession, OECD still urged central banks to keep hiking interest rates as inflation, though starting to decline, is still at a high level.

OECD expected world’s economic growth to slow from 3.1% this year to 2.2% next year before accelerating to 2.7% in 2024.