The world economy will slow next year because of inflation, high rates and war, OECD says

By PAUL WISEMAN
AP Economics Writer

WASHINGTON (AP) — The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. The Paris-based Organization for Economic Cooperation and Development estimated Wednesday that international growth will slow to 2.7% in 2024 from an expected 2.9% pace this year. That would amount to the slowest growth since the pandemic year of 2020. A key factor is that the OECD expects the world’s two biggest economies, the United States and China, to decelerate next year. The U.S. economy is forecast to expand just 1.5% in 2024, from 2.4% in 2023, as the Federal Reserve’s interest rate increases continue to restrain growth.