World Economy Set for Weak Inflation-Plagued Recovery, OECD Warns
- OECD sees growth below pre-Covid levels in 2023 and 2024
- Central banks must keep tight policy to defeat core pressures
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The global economy is set for a weak recovery from the shocks of Covid and Russia’s war in Ukraine, dogged by persistent inflation and the restrictive policies of major central banks seeking to contain price pressures, the OECD said.
The Paris-based organization’s latest Economic Outlook forecasts a 2.7% expansion of world output this year and only a modest pickup to 2.9% in 2024, both below the 3.4% average in the seven years before the pandemic. The US, the euro area and China will see the same relative sluggishness in their recoveries, while inflation will be stronger than in the period through 2019.