According to Organisation for Economic Cooperation and Development (OECD), world economic growth would slow from 3.1% this year — slightly better than foreseen in September — to 2.2% next year, before accelerating to 2.7% in 2024.
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Global growth has seen falling from 1% in 2022 to 2.2% in 2023.
According to OECD, the global economy should avoid a recession next year but the worst energy crisis since the 1970s will trigger a sharp slowdown, with Europe hit hardest.
With energy prices likely to remain high, the OECD said central banks should keep raising interest rates to fight inflation, with signs that early hikes in Brazil and the United States were paying off.
National outlooks vary widely, with the U.K.’s economy set to lag major peers.
The OECD said the global slowdown was hitting economies unevenly, with Europe bearing the brunt as Russia’s war in Ukraine hits business activity and drives up energy prices.
It forecast that the 19-country euro zone economy would grow 3.3% this year then slow to 0.5% in 2023 before recovering to expand by 1.4% in 2024.
That was slightly better than the OECD’s September outlook, when it estimated 3.1% growth this year and 0.3% in 2023.
The U.S. economy was set to hold up better, with growth expected to slow from 1.8% this year to 0.5% in 2023 before rising to 1.0% in 2024.
China, which is not an OECD member, was one of the few major economies expected to see growth pick up next year after a wave of COVID lockdowns.
Growth there was seen rising from 3.3% this year to 4.6% in 2023 and 4.1% in 2024, compared with previous forecasts for 2022 of 3.2% and 4.7% for 2023.
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