On Wednesday, the Organization for Economic Cooperation and Development (OECD) said that the global economy is expected to slow down slightly next year as a result of tightening monetary policies, weak trade and lower business and consumer confidence.
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The OECD's latest economic outlook report projected the global GDP growth at 2.9 percent in 2023, followed by a mild slowdown to 2.7 percent in 2024 and a slight improvement to 3 percent in 2025.
Asia is expected to continue to account for the bulk of the global growth in 2024-25, as it does in 2023, the report said.
As cost pressures moderate, consumer price inflation is expected to gradually ease back towards central bank targets in most economies by 2025.
Inflation in OECD countries is expected to decline from 7 percent in 2023 to 5.2 percent in 2024 and 3.8 percent in 2025, it said.
"The global economy continues to confront the challenges of both low growth and elevated inflation, with a mild slowdown next year, mainly as a result of the necessary monetary policy tightening over the past two years. We expect that inflation will be back at central bank targets by 2025 in most economies," OECD Secretary Mathias Cormann said.
"To secure stronger growth, we need to boost competition, investment and skills and improve multilateral cooperation to tackle common challenges, like reinvigorating global trade flows and delivering transformative action on climate change," he added.