OECD forecast: High rates, inflation to slow world growth

By PAUL WISEMAN and DAVID McHUGH
AP Business Writers

Hobbled by high interest rates, punishing inflation and Russia’s war against Ukraine, the world economy is expected to eke out only modest growth this year and to expand even more tepidly in 2023. That’s the sobering forecast issued Tuesday by the Paris-based Organization for Economic Cooperation and Development. In the OECD’s estimation, the world economy will grow just 3.1% this year, down sharply from a robust 5.9% in 2021. Next year, the OECD predicts, would be even worse: The international economy will expand only 2.2%. In its latest forecast, the organization predicts that the U.S. Federal Reserve’s aggressive drive to tame inflation with higher interest rates will grind the U.S. economy to a near-halt.