JAKARTA. The Organization for Economic Co-operation and Development (OECD) cut its outlook for global economic growth in 2024.
Based on the outlook released in September 2023, global economic growth in 2024 is estimated at only 2.7% or 0.2% lower than the outlook issued in June 2023.
The OECD notes in lowering the outlook for global economic conditions in 2024 is the high rate of global inflation and the slowdown in global trade.
However, the OECD actually stated that the general inflation rate is expected to continue to decline gradually in G20 countries from 7.8% in 2022 to 6% in 2023 and then further down to 4.8% in 2024.
According to the OECD, some developed countries are expected to have lower economic growth in 2024.
For example, the UK's economic growth is set to be lower by 0.2% to only 0.8%, Germany's lower by 0.4% to 0.9%, France's down by 0.1% to 1.0% and China's economic growth cut by 0.5% to 4.6%.
In its note, the OECD advised governments around the world to design more credible medium-term fiscal policies. This includes responding to rising spending needs and coping with an aging population.
Some other issues that must be responded to immediately are the need for defense, climate change, and the high debt burden.
Meanwhile, the outlook for economic growth in 2023 is different. The OECD raised its projection compared to the previous estimate to 3% or 0.3% higher than the outlook released as of June 2023. (ASP/KEN)