The world economy will grow just 3.1 percent this year, down sharply from a robust 5.9 percent in 2021, according to the projections by the Paris-based Organisation for Economic Cooperation and Development.
Hobbled by high interest rates, punishing inflation and Russia’s war against Ukraine, the world economy is expected to eke out only modest growth this year and to expand even more tepidly in 2023.
That was the sobering forecast issued on Tuesday by the Paris-based Organisation for Economic Cooperation and Development (OECD).
In the OECD's estimation, the world economy will grow just 3.1 percent this year, down sharply from a robust 5.9 percent in 2021.
Next year, the OECD predicts, will be even worse: The international economy would expand only 2.2 percent.
“It is true we are not predicting a global recession,” OECD Secretary-General Mathias Cormann said at a news conference.
“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 percent global growth.”
READ MORE: Russia enters recession as GDP shrinks by 4%
US and Europe to falter
The OECD expects the United States, the world's largest economy, to grow just 1.8 percent this year (down drastically from 5.9 percent in 2021), 0.5 percent in 2023 and 1 percent in 2024.
Their report foresees US inflation, though decelerating, to remain well above the Fed’s 2 percent annual target next year and into 2024.
The organisation's forecast for the 19 European countries that share the euro currency, which are enduring an energy crisis from Russia's war, is hardly brighter.
OECD expects the eurozone to collectively manage just 0.5 percent growth next year before accelerating slightly to 1.4 percent in 2024.
And it expects inflation to continue squeezing the continent: The OECD predicts that consumer prices, which rose just 2.6 percent in 2021, will jump 8.3 percent for all of 2022 and 6.8 percent in 2023.
Whatever growth the international economy produces next year, the OECD says, will come largely from the emerging market countries of Asia, who it estimates will account for three-quarters of world growth.
India’s economy, for instance, is expected to grow 6.6 percent this year and 5.7 percent next year.
China's economy, which not long ago boasted double-digit annual growth, will expand just 3.3 percent this year and 4.6 percent in 2023.
READ MORE: World Bank slashes 2022 global growth forecast to 2.9%