The Organization of Economic Cooperation and Development on Tuesday lifted its forecast for world development in 2023, however lower its outlook for financial exercise subsequent yr.
The OECD forecast world development of three% this yr, which represents a slowing from final yr’s 3.3% however an enchancment from the group’s earlier estimate of two.7% development. The OECD nonetheless is now forecasting 2.7% development in 2024, down from 2.9%.
“High-frequency activity indicators across the largest economies present a mixed picture, but on balance signal a loss of momentum in the second half of 2023,” mentioned the OECD.
Like many forecasters, the OECD was stunned by how resilient the U.S. and different main economies have been within the face of aggressive rate of interest hikes. Its U.S. GDP forecast was boosted to 2.2%, a 0.6 proportion level rise from its earlier view.
There had been downgrades as effectively, notably to Germany, the place the OECD now forecasts a 0.2% deterioration, and to China, the place its forecast of 5.15 development this yr represents a downgrade of 0.3 proportion factors.
The OECD sees the U.S. slowing down into an election yr — it’s now forecasting simply 1.3% development in 2024. It mentioned tighter monetary situations will reasonable demand pressures.
Source web site: www.marketwatch.com