OECD hikes global growth forecast for 2023, 2024

The Organization for Economic Co-operation and Development (OECD) on Friday raised its world economic growth forecasts for both 2023 and 2024, but warned that the global outlook still remains fragile.

Global gross domestic product (GDP) is now projected to reach 2.6% in 2023, up from the previous forecast of 2.2%, according to the OECD's latest Interim Economic Outlook.

Global growth is expected to hit 2.9% next year, slightly more than the previous projection of 2.7%, the report said.

Headline inflation in G-20 economies is projected to decrease from 8.1% in 2022 to 5.9% in 2023 and 4.5% in 2024, owing to a fall in energy prices, the Paris-based organization said.

It pointed out that the reopening of the Chinese economy at the end of last year helped ease global supply chain pressures and is likely to boost global demand moving forward.

"Headline inflation has shown signs of easing due to the fall in energy prices but, right from the outset, the global economic outlook remains fragile and risks remain tilted to the downside," OECD Secretary-General Mathias Cormann said.