Economic growth is expected to decrease in the West
The forecast emphasizes that the possible scenario for the global economy is not a recession, but a significant decrease in the rate of economic development.
The new forecast of the Organization for Economic Co-operation and Development (OECD) for the coming years states that the world economy is experiencing its most critical period since the 1970s.
Energy prices has driven inflation to levels not seen in many decades.
The report says that the world economy will experience a contraction of 2.3 percent in 2023 and this contraction will stabilize relatively at around 2.7 percent in 2024.
During this period, Asia will become the main engine of economic growth, Europeand very weak growth will be recorded in the economies of North America and South America.
of Russia Ukraine the cost of war
It is also noted that the global economy is paying a high price for the war started by Russia in Ukraine inflation, rise in price and pays with poor growth.
The report notes that even before this war, the global economy had just begun to recover from the effects of the pandemic.
The document states that the unexpected increase in prices and the decrease in real incomes have reduced purchasing power in many countries.
The OECD reports that central banks around the world inflation in order to fight with, they have increased the accounting rates, and this is already bearing some fruit.
The report says that it is extremely important to invest in energy security and diversification of energy sources.
It is also emphasized that the possible scenario for the global economy is not a recession, but a significant decrease in the speed of economic development.
in the G7 countries
The report states that Britainand in Germany and Russia we are talking about the decline of the economy.
According to the forecast, the largest decrease among the G7 countries will be recorded in Britain.
According to the OECD forecast Britain economy is expected to decrease by 0.4 percent in 2023. According to the forecast, this decrease will be 0.2 percent in 2024.
According to the report, the rate of economic growth will be low in most of the G7 countries.
GDP in Italy 0.2, USA0.5 in in France It will increase by 0.6 percent, in Canada by 1 percent, and in Japan by 1.8 percent.
The forecast states that economic growth in the 19 countries of the Eurozone will be 3.3 percent this year, but this figure will decrease to 0.5 percent in 2023, and will recover to 1.4 percent in 2024.
The information says that China, which is not a member of the OECD, is one of the few large economies that will experience economic growth next year. Economic growth in China is expected to be 4.4 percent in 2023 and 4.1 percent in 2024.