OECD Predicts Global Economic Slowdown in 2024 Amid High Inflation and Geopolitical Tensions

U.S. and Chinese economies expected to decelerate, while eurozone growth remains weak but improves over 2023.

The Organization for Economic Cooperation and Development (OECD) predicts a global economic slowdown in 2024, with growth moderating from 2.9% in 2023 to 2.7% in 2024, before picking up to 3.0% in 2025.
The slowdown is attributed to the impact of wars, high inflation, and continued high interest rates. The Israel-Hamas conflict and Russia's war in Ukraine are cited as potential risks.
The world's two biggest economies, the United States and China, are expected to decelerate next year. The U.S. economy is forecast to expand just 1.5% in 2024, down from 2.4% in 2023, while China's growth is expected to ease from 5.2% to 4.7%.
The OECD expects inflation to decline, with U.S. inflation dropping from 3.9% in 2023 to 2.8% in 2024 and 2.2% in 2025, just above the Federal Reserve's 2% target level.
The eurozone is also expected to contribute to the global slowdown due to heightened interest rates and the jump in energy prices following Russia's invasion of Ukraine. The collective growth of the eurozone is expected to be 0.9% in 2024, up from a predicted 0.6% growth in 2023.