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In spite of the recession, India will boom and Europe will slow down

Dublin: The worst energy crisis since the 1970s could keep Europe in recession for longer, although the global economy may avoid recession next year, the Organization for Economic Co-operation and Development (OECD) has warned.

To sustain growth, the Organization for Economic Cooperation and Development urged European central banks to continue raising interest rates.

The OECD predicts that global economic growth will slow from 3.1% this year to 2.2% next year, but even if it accelerates to 2.7% in 2024, Europe will not see commensurate growth.

India will emerge as a major economic power.

Despite a global slowdown, the OECD predicts that India will have impressive economic growth by the end of 2024.

However, the global economy is expected to slow significantly in 2023, and Europe will have to increase its impact as the global recession hits the economy unevenly, Russia’s war in Ukraine hurts business activity, and energy prices soar, based on the OECD. “And inflation is declining in many countries but is still high,” said Acting OECD Chief Economist Alvaro Santos Pereira.

It predicts that the eurozone’s economy will expand by 1.4% in 2024, down from 3.3% this year.

Germany’s growth rate is expected to slow to 0.3% next year.

The French economy, which is less reliant on Russian energy, is expected to grow by 0.6% next year, while Italy’s economy is expected to grow by 0.2%.

Outside the euro zone, growth in the UK economy is expected to contract by 0.4% next year as it struggles with rising interest rates and higher prices.

India will rise to the top of the rankings.

In comparison to previous projections, India’s growth in 2022 will be phenomenal. Growth may slow down to 5.7% in 2023 as the global slowdown hits India too, compared with the expected 6.7% this year. It is expected to rise to 4.1% by 2024. However, India will be the shining star in 2024. The OECD estimates that India will rise to the top of the list in terms of growth rate when the growth rate reaches 6.9%.

The United States and China.

The OECD previously expected the U.S. economy to grow by just 1.5% this year, leaving its estimate for 2023 unchanged.

China, which is not an OECD member, is one of the few major economies expected to grow next year following a wave of COVID lockdowns, albeit at a slower rate than India. Growth will accelerate from 3.3% this year to 4.6% in 2023 and 4.1% in 2024, up from 3.2% in 2022 and 4.7% in 2023 previously forecast.

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