World economic growth will slow sharply to 2.2% next year from a slightly upgraded 3.1% this year, the Organisation for Economic Co-operation and Development (OECD) said Tuesday, amid a global tide of monetary tightening to tame inflation partly blamed for Russia's war.
The Paris-based club of rich economies does not see a global recession as its main scenario, projecting that growth will accelerate toward 2.7% in 2024. The outlook for Japan was slightly upgraded for next year, with its economy now forecast to grow 1.8% instead of 1.4% in the previous report in September.
Japan has been slow in its recovery from the COVID-19 pandemic, making the Bank of Japan an outlier that is in no rush to tighten policy. The world's third-largest economy, which the group expects to expand by 1.6% in 2022, unchanged from September, will likely continue with its catch-up efforts. The projections are above Japan's potential growth rate of around 1%.