THE global economy will slow slightly next year but the risk of a hard landing has subsided despite high levels of debt and uncertainty over interest rates, the Organisation for Economic Cooperation and Development (OECD) said on Wednesday (Nov 29).
Paris-based policy forum said in its latest Economic Outlook, Global growth is set to moderate from 2.9 per cent this year to 2.7 per cent in 2024 before picking up in 2025 to 3.0 per cent.
Growth in advanced economies that make up the OECD’s 38 members was seen headed for a soft landing with the United States holding up better than expected so far.
China’s economy was also expected to slow as it grapples with a deflating real estate bubble and consumers save more in the face of greater uncertainty about the outlook.
The OECD forecast US growth would slow from 2.4 per cent this year to 1.5 per cent next year, revising up its estimates from September when it predicted US growth of 2.2 per cent in 2023 and 1.3 per cent in 2024.
Though the risk of a hard landing in the United States and elsewhere had eased, the OECD said that the risk of recession was not off the table given weak housing markets, high oil prices and sluggish lending.
