The Paris-based Organization for Economic Co-operation and Development (OECD) released its latest projections for the global economy on Monday. And they are not the most optimistic…
For France
The French economy should grow by 0.6% next year, according to the OECD. A level well below the 1% anticipation on which the government is counting, which presents its 2023 budget on the same day. The OECD has revised down, by 0.8 points, its previous French forecast, dating back to June, he extent of the slowdown in the manufacturing sector raises fears of “an imminent generalization of the contraction to the entire private sector”, which increases the risks of recession in France. France should, moreover, suffer the repercussions of the economic plunge of its main partner in this area, Germany.
For Europe
Germany will thus fall into recession next year, predicts the OECD. For all the States of the euro zone, growth is only expected at 0.3% next year, against 1.6% previously anticipated. Europe is bearing the full brunt of the economic slump caused by the war in Ukraine, which is entering its eighth month, and has led to soaring energy prices and serious fears over the supply of gas in the run-up to the winter.
Although it is counting on more robust growth than previously anticipated for 2022 in the euro zone, the OECD warns of “risks of a drop in production in several European states during the winter months”.
For the world
Beyond Europe, it is global growth that will be weaker in 2023 than previously forecast: the OECD now forecasts global GDP growth of 2.2% next year, against 2.8% still anticipated in June.