GROWTH global gross domestic product (GDP) is expected to decline from 3.1 percent this year to 2.2 percent in 2023, according to the Organization for Economic Co-operation and Development (OECD) in its latest Economic Outlook on Tuesday.
The 2022 figure is half of the rate recorded in 2021 during the recovery from the Covid-19 epidemic, and the growth rate projected for 2023 is far from what was predicted before the outbreak of the Russia-Ukraine conflict, Xinhua reported.
“Asia will be the main growth engine in 2023 and 2024, while Europe, North America and South America will see very low growth,” according to the OECD.
Major emerging markets in Asia are projected to account for nearly three-quarters of global GDP growth in 2023, while economies in the United States and Europe are expected to slow.
“Constrained by high energy and food prices, weak confidence, persistent supply problems, and the initial effects of tighter monetary policy, annual growth in the euro area in 2023 is projected to be 0.5 percent,” according to the organization.
The US economy will only grow by 0.5 percent in 2023, compared to 1.8 percent in 2022.
“Europe is working to increase its natural gas reserves and curb demand, but this winter in the Northern Hemisphere is sure to make that effort more challenging,” according to the OECD.
Higher gas prices or gas supply disruptions will directly imply weaker growth and higher inflation rates in Europe and the world in 2023 and 2024.
The OECD explains that accelerating investment in the use and development of clean energy sources and technologies is essential in order to diversify energy supplies and ensure energy security. – Named
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