The world economy will grow at a rate of 3.2% of GDP in 2024, the Organisation for Economic Co-operation and Development (OECD) said on Wednesday, revising its previous forecast by 0.1 points upwards in a context of declining inflation.
“The growth was relatively strong in many G20 countries, “particularly in the United States, Brazil, India, Indonesia and the United Kingdom,” the Paris-based organization writes in its quarterly economic outlook report.
However, these results, in a context of “resilient” growth and falling inflation, were “modest in a few economies” such as Germany – the European economic engine – and Argentina, where “production contracted,” the OECD said.
Of the first group, the OECD increased Brazil’s growth by one point, to 2.9% of Gross Domestic Product (GDP) for 2024, and the United Kingdom’s by 0.7 points (1.1%), compared to its latest forecasts in May.
Spain, the fourth largest economy in the Eurozone and a permanent guest at G20 meetings, is expected to grow by 2.8% (+1 point) this year, ahead of Germany (0.1%, -0.1 points), France (1.1%, +0.4) and Italy (0.8%, +0.1), according to the organisation.
Updated forecasts left growth for 2024 unchanged of the main economies –the United States (2.6%) and China (4.9%)-but revised Mexico’s downwards (1.4%, -0.8) and predicted a greater contraction in Argentina, of -4% of GDP.
“Global GDP growth is projected to stabilise at 3.2% in 2024 and 2025, accompanied by a further decline in inflation, an improvement in real incomes and a less restrictive monetary policy“the report stresses.
Inflation: what will happen to the countries of the region?
In the G20 economies, Global inflation would rise from 5.4% in 2024 to 3.3% in 2025. In Argentina, it would remain at high levels: with 147.5% and 46.7%, respectively.
In this context, the OECD advocated increasing wealth and environmental taxes to “improve the prospects for “debt sustainability”which has increased considerably in most developed countries.
Source: Ambito
