Paris : The Economic Outlook report of the Organization for Economic Co-operation and Development (OECD) said that the impact of the global recession on the emerging market economies in Asia is likely to be less. However, the rebound in China and more moderate inflationary pressures have helped. India is projected to grow at around 6 per cent in fiscal year 2023-24, while Indonesia’s economy is projected to grow at around 6 per cent in fiscal year 2023-24 amid tighter financial conditions before recovering to around seven per cent in fiscal year 2024-25, the OECD report said. Will continue at the rate of 4.7 percent to 5 percent per year in the financial year 2023-24.
China’s growth rate expected to reach 5.3 percent
According to the OEC Economic Outlook Interim Report March 2023 – A Fragile Recovery, China’s growth rate is expected to accelerate to 5.3 percent this year before slowing to 4.9 percent in 2024. The OECD said in a report released on Friday that the average annual growth of global GDP in 2023 is expected to be 2.6 percent, which will be 2.9 percent in 2024, which is close to the pre-pandemic. In its previous forecast in November, it was 2.2 per cent.
Brazil and South Africa will remain sluggish for two years
The report states that projected global growth over 2023-24 will be weaker than any two-year period since the global financial crisis, except for the slowdown at the start of the pandemic. According to the report, growth in several other emerging market economies, including Brazil and South Africa, is projected to slow by an average of about one per cent per year for the next two years. Activity in Turkey is expected to return significantly in the early part of 2023 due to major damage from recent earthquakes, but with full-year growth of 2.8 percent in 2023 and 3.8 percent in 2024 as reconstruction spending increases. Will be OK. It added that production in Russia is expected to decline this year and next, as pressure from economic and financial sanctions begins to mount.
Inflation is coming down gradually
According to the OECD’s interim report, the global growth rate in 2023-24 is estimated to be at the base trend rate and inflation is gradually coming down. The reason for this is that quick and synchronous monetary policy has become fully effective in the last years. Lower commodity prices and the full reopening of China drive growth projections into 2023 from the OECD Economic Outlook in November 2022, but the growth benefits of these changes should be limited to the short term.