OECD cuts India growth rate forecast to 6.6 %in 2022 and warns of slow world economic growth

Tags: Reports Economy/Finance

The Organisation for Economic Co-operation and Development (OECD) has cut the expected growth rate of the Indian economy in 2022 to 6.6% from its earlier forecast of 6.9% but it has retained its earlier forecast of   5.7% in 2023. 

 In its latest Economic Outlook report released on 22 November 2022 the OECD expects the world Economy to grow by 3.1% down sharply from 5.9% growth in 2021. It expects the growth to be 2.2 % in 2023 and 2.7% in 2024.

The report says that Europe has been hit hardest due to the Russia -Ukraine war and the consequent high energy prices. The 19 country’s Eurozone is expected to grow by 3.3% this year then slow to 0.5% in 2023 before recovering to grow by 1.4% in 2024.

The biggest European economy Germany is expected to contract by -0.3% in 2022.

World’s largest economy, the U.S. is expected to grow by 1.8% this year, 0.5% in 2023 and 1.0% in 2024. 

China, which is not an OECD member, was one of the few major economies expected to see growth pick up next year.  Growth there was seen rising from 3.3% this year to 4.6% in 2023 and 4.1% in 2024. 

Organisation of Economic Cooperation and Development (OECD)

It was set upon 16 December 1960 by 18 European countries and the United States, Canada. It is a think tank which supports the free market economy.

The OECD publishes economic reports, statistical databases, analyses, and forecasts on the outlook for economic growth worldwide.

At present it has 38 member countries from Europe, South America, Asia and North America.

India, China are not members of OECD.

Headquarters: Paris, France.