Global economic growth to remain subdued

The Paris-based organisation OECD (Organization for Economic Cooperation and Development), has anticipated a humble economic growth worldwide for the second half of 2022. According to its estimates, there will be a moderate growth of 3% this year. The growth is further expected to come down to 2.2% in FY23. Consequently, there will be an estimated loss of about US$ 2.8 trillion in global output during the year 2023, as per the forecast.

OECD has projected a growth slow-down to about 1.5% for the United States during this year, and falling further in FY23 to 0.5%. The European economy is expected to record growth of 1.25% this year, which is estimated as to decline to 0.3% in 2023, according to the predictions by OECD. Mathias Cormann, Secretary-General of OECD said, “The war, the burden of high energy and food prices, as well as zero COVID-19 policies from China, mean that growth will be lower, and inflation will be higher and more persistent”.