OECD forecasts a significant global growth slowdown in 2023

In its latest report, the Organisation for Economic Cooperation and Development (OECD) said on Tuesday, “our central scenario is not a global recession but a significant growth slowdown for the world economy in 2023.”

Additional takeaways

Global growth of 3.1% in 2022, 2.2% in 2023 and 2.7% in 2024 (previously 3.0% in 2022, 2.2% in 2023).

Sees US growth of 1.8% in 2022, 0.5% in 2023, 1.0% in 2024 (previously 1.5% in 2022, 0.5% in 2023).

Sees Euro area growth of 3.3% in 2022, 0.5% in 2023, 1.4% in 2024 (previously 3.1% in 2022, 0.3% in 2023).

Sees Japanese growth of 1.6% in 2022, 1.8% in 2023, 0.9% in 2024 (previously 1.6% in 2022, 1.4% in 2023).

Sees Chinese growth of 3.3% in 2022, 4.6% in 2023, 4.1% in 2024 (previously 3.2% in 2022, 4.7% in 2023).

Sees UK growth of 4.4% in 2022, -0.4% in 2023, 0.2% in 2024 (previously 3.4% in 2022, 0.0 in 2023).

Further tightening of monetary policy is essential to fight inflation.

Fiscal policy support should become more targeted and temporary.