Global [de]growth is projected to [strengthen]
weaken further in 2023
Global growth is projected to remain subdued in the second half of 2022 and ease further in 2023, resulting in annual average increases of just under 3% in 2022 and 2¼ per cent in 2023 (Figure 7). Relative to OECD projections made in December 2021, before the war in Ukraine, global output in 2023 is now projected to be some USD 2.8 trillion lower (in PPP terms and 2015 prices).
One key factor slowing global growth is the ongoing generalized tightening of monetary policy in most major economies in response to the greater-than-expected overshoot of inflation targets over the past year. In addition, the erosion of real disposable household incomes, low consumer confidence and high prices for some energy products, especially natural gas in Europe, will negatively affect both private consumption and business investment.