OECD expects limited growth for global economy due to higher ‎interest rates

The Organization for Economic Co-operation and Development said today, Wednesday, that the global economy will record only moderate growth over the next year, with the full effects of central banks raising interest rates felt, which limits the support resulting from falling inflation, in a slight adjustment to its economic forecasts for the year 2023.

According to Reuters, the organization said that the global economy is expected to grow 2.7 percent this year, up from the 2.6 percent it forecast in March.

The Paris-based organization added that despite the support resulting from China’s abolition of anti-Corona virus restrictions, growth will record the lowest annual rate since the global financial crisis that occurred in 2008 and 2009, with the exception of 2020, which was severely affected by the pandemic.

It said growth would then accelerate only slightly next year to 2.9 percent, unchanged from the March forecast, given the growing impact of interest rate hikes by major central banks over the past year on private investment, starting with the housing market.