PARIS – Global gross domestic product (GDP) growth is projected to slide from 3.1 percent this year to 2.2 percent in 2023, the Organization for Economic Co-operation and Development (OECD) said in its latest Economic Outlook on Tuesday.
The 2022 figure is around half the pace recorded in 2021 during the rebound from the pandemic, and the growth rate projected for 2023 is well below that foreseen before the outbreak of the Russia-Ukraine conflict.
“Asia will be the main engine of growth in 2023 and 2024, whereas Europe, North America and South America will see very low growth,” it said.
The major emerging markets in Asia are projected by the OECD to account for close to three-quarters of global GDP growth in 2023, while the economies in the United States and Europe are expected to slow down.
“Held back by high energy and food prices, weak confidence, continuing supply bottlenecks and the initial impact of tighter monetary policy, annual growth in the euro area in 2023 is projected to be 0.5 percent,” the organization said.
The United States economy would only grow by 0.5 percent in 2023, compared with 1.8 percent in 2022.
The energy markets remain among the significant downside risks.
“Europe has gone a long way to replenish its natural gas reserves and curb demand, but this winter in the Northern Hemisphere will certainly be challenging,” it said, adding that higher gas prices or outright gas supply disruptions would entail significantly weaker growth and higher inflation in Europe and the world in 2023 and 2024.
Accelerating investment in the adoption and development of clean energy sources and technologies will be crucial to diversifying energy supplies and ensuring energy security, the OECD said. (Xinhua)
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