Global economic outlook improving – but core inflation may weigh on growth

Global GDP growth in 2023 is projected to reach 2.7% – the lowest annual rate since the global financial crisis (except for 2020 when the COVID-19 pandemic hit). While expected to increase to 2.9% in 2024 as inflation moderates and real incomes increase, below-trend growth rates underline the downside risks in the global economy.

Core inflation is proving persistent despite the easing of heading inflation as energy prices have fallen. The resulting need for maintaining restrictive monetary policy is increasingly weighing on global economic output.

Pressures on government budgets will require policy action, including better targeting of fiscal support measures at more vulnerable households and prioritising structural reforms to bolster long-term growth potential.

> Explore: OECD Economic Outlook 2023 (7 June)

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