👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

OECD slightly increases annual growth outlook, warns headwinds remain

Published 06/07/2023, 04:14 AM
© Reuters.

Investing.com -- The global economy is now expected to grow at a slightly faster pace this year, according to the latest forecast on Wednesday from the Organization for Economic Co-operation and Development.

OECD said it now expects the global economy to expand 2.7% this year, a slight increase from its previous projection of 2.6%. However, when not including the pandemic-hit year of 2020, this would still be the lowest annual rate of growth since the 2008-2009 financial crisis, it noted.

Lower energy prices are easing the strain on household budgets, while business and consumer sentiment is also improving, the Paris-based organization said. The re-opening of China has also helped to boost global activity.

Growth is then expected to slightly accelerate to 2.9% in 2024 -- unchanged from the OECD's March forecast.

During that time, the OECD expects a recent spate of central bank interest rises aimed at corralling inflation to gradually weigh more on private investment, starting with the housing market.

The updated forecasts come a day after the World Bank raised its global growth outlook for this year, but warned that tight monetary policy and the war in Ukraine will continue to weigh on the global economy next year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.