The world economy will slow next year because of inflation, high rates and war, OECD says
1 year ago

The world economy will slow next year because of inflation, high rates and war, OECD says

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ /verifyErrors }} The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. The world economy has endured one shock after another since early 2020 — the eruption of COVID-19, a resurgence of inflation as the rebound from the pandemic showed unexpected strength, Moscow's war against Ukraine and painfully high borrowing rates as central banks acted aggressively to combat the acceleration of consumer prices. "Growth has been stronger than expected so far in 2023,″ the OECD said in its 221-page report, “but is now moderating as the impact of tighter financial conditions, weak trade growth and lower business and consumer confidence is increasingly felt.” Moreover, the OECD warned, the world economy is confronting new risks resulting from heightened geopolitical tensions amid the Israel-Hamas war — “particularly if the conflict were to broaden.” “This could result in significant disruptions to energy markets and major trade routes,” it said.

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History of this topic

OECD warns central banks about rate cuts
2 weeks, 5 days ago

OECD warns central banks about rate cuts

China Daily  

FILE PHOTO: European Central Bank President Christine Lagarde speaks to reporters following the Governing Council's monetary policy meeting in Frankfurt, Germany September 12, 2024. The Organisation for Economic Co-operation and Development, or OECD, has forecast continued economic resilience globally despite headwinds, while warning central banks against cutting interest rates too quickly amid persistent service-sector inflation. In its latest Economic Outlook …

OECD warns central banks about rate cuts
2 weeks, 5 days ago

OECD warns central banks about rate cuts

China Daily  

FILE PHOTO: European Central Bank President Christine Lagarde speaks to reporters following the Governing Council's monetary policy meeting in Frankfurt, Germany September 12, 2024. The Organisation for Economic Co-operation and Development, or OECD, has forecast continued economic resilience globally despite headwinds, while warning central banks against cutting interest rates too quickly amid persistent service-sector inflation. In its latest Economic Outlook …

UK interest rates to fall more slowly than expected after Budget – OECD
2 weeks, 5 days ago

UK interest rates to fall more slowly than expected after Budget – OECD

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy UK interest rates will fall …

World economy to accelerate in 2025, but recovery threatened by higher tariffs, OECD says
2 weeks, 5 days ago

World economy to accelerate in 2025, but recovery threatened by higher tariffs, OECD says

Live Mint  

The global economy is set to grow at slightly a faster pace next year as inflation continues to cool, but could falter if tariffs rise and governments fail to narrow wide budget deficits, the Organization for Economic Cooperation and Development said Wednesday. “Growth continues to be resilient," said Alvaro Pereira, the OECD’s chief economist, in an interview with The Wall …

Monetary policy review: RBI should stick to its price stability mandate
2 weeks, 5 days ago

Monetary policy review: RBI should stick to its price stability mandate

Live Mint  

One of the lingering effects of covid—‘long covid’—is that economic growth has begun to look a bit like the Sensex, albeit in slow motion. So, last fiscal year’s growth looked rosy in large part because growth in 2022-23 had flagged since 2021-22, when it was 9.7% but on a covid-shrunken GDP base of 2020-21. As the US Fed and major …

IMF's economic view: A brighter outlook for US but still-tepid global growth
2 months ago

IMF's economic view: A brighter outlook for US but still-tepid global growth

The Independent  

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Inflation in Europe falls below 2% and opens the way for faster rate cuts
2 months, 3 weeks ago

Inflation in Europe falls below 2% and opens the way for faster rate cuts

The Independent  

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Inflation likely stayed low last month as Federal Reserve edges closer to cutting rates
4 months, 1 week ago

Inflation likely stayed low last month as Federal Reserve edges closer to cutting rates

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. For months, cooling inflation has …

U.S. inflation slowed again in July, clearing the way for the Fed to begin cutting rates
4 months, 1 week ago

U.S. inflation slowed again in July, clearing the way for the Fed to begin cutting rates

LA Times  

A sale sign is displayed on a store clothes rack. Wednesday’s report from the Labor Department showed that consumer prices rose just 0.2% from June to July after dropping slightly the previous month for the first time in four years. At a news conference last month, Powell said that cooler inflation data this spring had strengthened the Fed’s confidence that …

US economic growth increased last quarter to a healthy 2.8% annual rate
4 months, 4 weeks ago

US economic growth increased last quarter to a healthy 2.8% annual rate

Associated Press  

WASHINGTON — The nation’s economy accelerated last quarter at a strong 2.8% annual pace, with consumers and businesses helping drive growth despite the pressure of continually high interest rates. The central bank’s favored inflation gauge rose at a 2.6% annual rate last quarter, down from 3.4% in the first quarter of the year. the Fed thinks that it’s getting close …

U.S. economic growth increased last quarter to a healthy 2.8% annual rate
4 months, 4 weeks ago

U.S. economic growth increased last quarter to a healthy 2.8% annual rate

LA Times  

Amazon employees in South Gate load packages on carts before putting them on trucks for delivery last week as part of the company’s Prime Day event. The nation’s economy accelerated last quarter at a strong 2.8% annual pace, with consumers and businesses helping drive growth despite the pressure of continually high interest rates. The central bank’s favored inflation gauge rose …

Interest rate cuts under threat from ‘stubbornly high inflation’
5 months, 1 week ago

Interest rate cuts under threat from ‘stubbornly high inflation’

The Telegraph  

Interest rate cuts by the Bank of England and Federal Reserve are at risk of being derailed by stubbornly high inflation, the International Monetary Fund has warned. Pierre Olivier Gourinchas, the IMF’s chief economist, warned that underlying inflation remained “persistent”, with global growth likely to suffer if the US keeps borrowing costs at their highest level since 2001. Speaking at …

US Employment Seen Moderating Along With Wage Growth
5 months, 3 weeks ago

US Employment Seen Moderating Along With Wage Growth

Live Mint  

-- US employers probably tempered their hiring while wage growth moderated in June, another favorable development for Jerome Powell and his Federal Reserve colleagues seeking more confirmation that inflation is slowing. Among central banks, minutes from the Reserve Bank of Australia’s June meeting will draw a lot of attention on Tuesday after Governor Michele Bullock said the board considered a …

US inflation eases to 3.3% in May, defying expectations for slight rise
6 months, 1 week ago

US inflation eases to 3.3% in May, defying expectations for slight rise

Hindustan Times  

Stock markets surged Wednesday after data showed US inflation slowed in May, raising hopes the Federal Reserve will cut interest rates later this year. "The cool inflation numbers should boost investor confidence for a Fed rate cut in the second half of 2024," said Bret Kenwell, US investment analyst at trading platform eToro. With inflation slowing and other recent data …

World Bank boosts forecast: Strength of US economy will support global growth of 2.6% this year
6 months, 1 week ago

World Bank boosts forecast: Strength of US economy will support global growth of 2.6% this year

Associated Press  

WASHINGTON — The World Bank upgraded its outlook for the global economy Tuesday, estimating that it will expand 2.6% this year on the strength of sustained growth in the United States. Stronger-than-expected growth in the United States — the world’s biggest economy — accounted for 80% of the World Bank’s upgraded outlook. But even after the World Bank’s upgrade, global …

IMF predicts India’s GDP growth to be 7% in 2024, 6.5% in 2025 as pent-up demand fades
6 months, 2 weeks ago

IMF predicts India’s GDP growth to be 7% in 2024, 6.5% in 2025 as pent-up demand fades

Firstpost  

“In India, the outlook is for GDP growth to moderate from 8.2 per cent in 2023 to 7 per cent in 2024 and 6.5 per cent in 2025, because pent-up demand accumulated during the pandemic has been exhausted” the IMF said in the World Economic Outlook The IMF on Tuesday said India's GDP would grow 7% in 2024-25. India’s GDP …

US economic growth last quarter is revised down from 1.6% rate to 1.3%, but consumers kept spending
6 months, 3 weeks ago

US economic growth last quarter is revised down from 1.6% rate to 1.3%, but consumers kept spending

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. The Commerce Department had previously estimated that the nation’s …

UN reports improved prospects for the world economy and forecasts 2.7% growth in 2024
7 months, 1 week ago

UN reports improved prospects for the world economy and forecasts 2.7% growth in 2024

Associated Press  

UNITED NATIONS — The United Nations reported improved prospects for the world economy since its January forecast on Thursday, pointing to a better outlook in the United States and several large emerging economies including Brazil, India and Russia. “Globally, energy and food prices are inching upward in recent months, but I think a bit more insidious even is the persistence …

US inflation eased last month in the first slowdown of 2024
7 months, 1 week ago

US inflation eased last month in the first slowdown of 2024

Associated Press  

WASHINGTON — Led by lower food and auto prices, inflation in the United States cooled slightly last month after three elevated readings, likely offering a tentative sigh of relief for officials at the Federal Reserve as well as President Joe Biden’s re-election team. Instead, he stressed that the Fed’s policymakers need “greater confidence” that inflation is falling to their 2% …

US economic growth in first quarter falls short of expectations at 1.6%; inflation may heat up
7 months, 4 weeks ago

US economic growth in first quarter falls short of expectations at 1.6%; inflation may heat up

Hindustan Times  

The US economy expanded less than projected in the first three months of 2024 as exports and consumer spending declined, confirming the expectations of the financial markets that the Federal Reserve would postpone rate-cutting until September. The first quarter saw the US economy rise by 1.6 percent, according to the government data. The first quarter saw the world's largest economy …

US growth slowed sharply last quarter to 1.6% pace, reflecting an economy pressured by high rates
7 months, 4 weeks ago

US growth slowed sharply last quarter to 1.6% pace, reflecting an economy pressured by high rates

Associated Press  

WASHINGTON — The nation’s economy slowed sharply last quarter to a 1.6% annual pace in the face of high interest rates, but consumers — the main driver of economic growth — kept spending at a solid pace. Gregory Daco, chief economist at the tax and consulting firm EY, noted that the underlying economy looks solid, though it’s slowing from last …

U.S. growth fell sharply to 1.6% last quarter, pressured by high interest rates
7 months, 4 weeks ago

U.S. growth fell sharply to 1.6% last quarter, pressured by high interest rates

LA Times  

Robots assemble solar panels at the Hanwha Qcells Solar plant in Dalton, Ga., in 2023. On Thursday, the government reported that U.S. economic growth slowed sharply last quarter to a 1.6% annual pace. The nation’s economy slowed sharply last quarter to a 1.6% annual pace in the face of high interest rates, but consumers — the main driver of economic …

IMF’s Georgieva says there’s ‘plenty to worry about’ despite recovery for many economies
8 months ago

IMF’s Georgieva says there’s ‘plenty to worry about’ despite recovery for many economies

Associated Press  

WASHINGTON — The head of the International Monetary Fund said Thursday that the world economy has proven surprisingly resilient in the face of higher interest rates and the shock of war in Ukraine and Gaza, but “there is plenty to worry about,’' including stubborn inflation and rising levels of government debt. In the United States, she said, “the flipside’’ of …

US economy to outpace G7 peers with double GDP growth rate this year, claims IMF
8 months, 1 week ago

US economy to outpace G7 peers with double GDP growth rate this year, claims IMF

Hindustan Times  

US has a 2x rate of GDP growth relative to any other G7 country this year, as per International Monetary Fund projections, while its economy gains the upper hand globally, creating wild market swings by itself. International Monetary Fund Chief Economist Pierre-Olivier Gourinchas holds the IMF's World Economic Outlook during a press briefing at the IMF-World Bank Group spring meetings …

IMF: Outlook for world economy is brighter, though still modest by historical standards
8 months, 1 week ago

IMF: Outlook for world economy is brighter, though still modest by historical standards

Associated Press  

WASHINGTON — The International Monetary Fund has upgraded its outlook for the global economy this year, saying the world appears headed for a “soft landing” — reining in inflation without much economic pain and producing steady if modest growth. In its latest outlook, the IMF, a 190-country lending organization, notes that the global expansion is being powered by unexpectedly strong …

Federal Reserve foresees 3 rate cuts in 2024 despite bump in inflation
9 months ago

Federal Reserve foresees 3 rate cuts in 2024 despite bump in inflation

Associated Press  

WASHINGTON — Federal Reserve officials signaled Wednesday that they still expect to cut their key interest rate three times in 2024, fueling a rally on Wall Street, despite signs that inflation remained elevated at the start of the year. Speaking at a news conference, Chair Jerome Powell said the surprising pickup in inflation in January and February hadn’t fundamentally changed …

US economy grew solid 3.2% in fourth quarter, a slight downgrade from government's initial estimate
9 months, 3 weeks ago

US economy grew solid 3.2% in fourth quarter, a slight downgrade from government's initial estimate

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The U.S. economy grew at …

Britain to suffer highest inflation in the G7 in 2024 and 2025, OECD
10 months, 2 weeks ago

Britain to suffer highest inflation in the G7 in 2024 and 2025, OECD

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. This verdict on their economic performance is yet more proof …

Report: US economy grew faster than any other G7 country last year
10 months, 3 weeks ago

Report: US economy grew faster than any other G7 country last year

Daily Mail  

America's economy is growing at a faster pace than any other G7 country in part thanks to a post-pandemic productivity boom, experts say. The IMF World Economic Outlook report estimates the US economy grew by 2.5 percent in 2023 - and is set for a similar 2.1 percent growth in 2024. Figures released today show US worker productivity grew at …

IMF raises growth forecast for global economy
10 months, 3 weeks ago

IMF raises growth forecast for global economy

Firstpost  

The two biggest economies in the world, China and the United States, have improved economic prospects, according to the International Monetary Fund, which raised its prediction for global growth on Tuesday. Although a “soft landing” appeared to be imminent, according to the IMF’s most recent World Economic Outlook, head economist Pierre-Olivier Gourinchas noted that global trade and overall GDP were …

Economic growth continues, as latest GDP data shows strong 3.3% pace last quarter
10 months, 4 weeks ago

Economic growth continues, as latest GDP data shows strong 3.3% pace last quarter

CBS News  

The nation's economy grew at an unexpectedly brisk 3.3% annual pace from October through December as Americans showed a continued willingness to spend freely despite high interest rates and price levels that have frustrated many households. Thursday's report from the Commerce Department said the gross domestic product — the economy's total output of goods and services — decelerated from its …

Global economy will slow for a third straight year in 2024, World Bank predicts
11 months, 2 weeks ago

Global economy will slow for a third straight year in 2024, World Bank predicts

Associated Press  

WASHINGTON — Hobbled by high interest rates, persistent inflation, slumping trade and a diminished China, the global economy will slow for a third consecutive year in 2024. “Near-term growth will remain weak, leaving many developing countries — especially the poorest — stuck in a trap: with paralyzing levels of debt and tenuous access to food for nearly one out of …

Wholesale inflation in US slowed further last month, signaling that price pressures continue to ease
1 year ago

Wholesale inflation in US slowed further last month, signaling that price pressures continue to ease

Associated Press  

Wholesale inflation in the United States was unchanged in November, suggesting that price increases in the economy’s pipeline are continuing to gradually ease. The Labor Department reported Wednesday that its producer price index — which tracks inflation before it reaches consumers — was flat from October to November after having fallen 0.4% the month before. Excluding volatile food and energy …

Economists predict US inflation will keep cooling and the economy can avoid a recession
1 year ago

Economists predict US inflation will keep cooling and the economy can avoid a recession

Associated Press  

NEW YORK — Most business economists think the U.S. economy could avoid a recession next year, even if the job market ends up weakening under the weight of high interest rates, according to a survey released Monday. Most of the surveyed economists expect inflation to continue to slow in 2024, though many say it may not get all the way …

Inflation in Europe falls to 2.4% as interest rates pack a punch. But the economy has stalled
1 year ago

Inflation in Europe falls to 2.4% as interest rates pack a punch. But the economy has stalled

Associated Press  

LONDON — Europeans again saw some relief as inflation dropped more than expected to 2.4% in November, the lowest in over two years, as plummeting energy costs have eased a cost-of-living crisis but higher interest rates squeeze the economy’s ability to grow. The new figure is close to the European Central Bank’s inflation target of 2% following a rapid series …

The world economy will slow next year because of inflation, high rates and war, OECD says
1 year ago

The world economy will slow next year because of inflation, high rates and war, OECD says

Associated Press  

WASHINGTON — The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. China’s “consumption growth will likely remain subdued due to increased precautionary savings, gloomier prospects for employment creation and heightened uncertainty,″ the OECD said. The world economy has endured one shock …

Focus still on evolution of inflation in the US
1 year ago

Focus still on evolution of inflation in the US

China Daily  

Customers shop at a Costco store in Foster City, the United States, Jan 12, 2023. The overall judgment set out in the recently released minutes of the meeting of the Federal Open Market Committee, held on Oct 31 and Nov 1, is that the employment, inflation and economic growth data of the United States now all support the decision that …

The world economy will slow next year because of inflation, high rates and war, OECD says
1 year ago

The world economy will slow next year because of inflation, high rates and war, OECD says

LA Times  

A crane lifts a shipping container at an automated container port in Tianjin, China. The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. China’s “consumption growth will likely remain subdued due to increased precautionary savings, gloomier prospects for employment creation and …

What’s pushing inflation down? More goods, workers and housing
1 year, 1 month ago

What’s pushing inflation down? More goods, workers and housing

Associated Press  

WASHINGTON — Long past its painful peak, inflation in the United States may be heading steadily back toward its pre-pandemic levels, without the need for further interest rate hikes by the Federal Reserve. Overall inflation didn’t rise from September to October, the first time that consumer prices collectively haven’t budged from one month to another in more than a year. …

IMF downgrades outlook for ‘limping’ world economy, with Mideast posing new challenge
1 year, 2 months ago

IMF downgrades outlook for ‘limping’ world economy, with Mideast posing new challenge

LA Times  

The International Monetary Fund and World Bank are holding their annual meetings in Marrakech, Morocco. “The global economy is limping along, not sprinting,” IMF chief economist Pierre-Olivier Gourinchas said at a news conference during the organization’s annual meeting, which is being held in Marrakech, Morocco. It’s “too early” to assess the impact on global economic growth from the days-old war …

Fitch retains India's FY2024 growth forecast at 6.3%, raises year-end inflation projection
1 year, 3 months ago

Fitch retains India's FY2024 growth forecast at 6.3%, raises year-end inflation projection

India TV News  

Fitch Ratings has maintained India's growth forecast for the current fiscal year at 6.3% while highlighting the country's economic resilience despite tighter monetary policies and export challenges. India's economy experienced robust growth of 7.8% in the April-June quarter of the current fiscal year, driven by strong activity in the services sector and robust demand. Fitch warned that India is not …

IMF predicts Indian economy to grow at 6.1 percent in 2023
1 year, 4 months ago

IMF predicts Indian economy to grow at 6.1 percent in 2023

Deccan Chronicle  

Washington: The International Monetary Fund has predicted that India's economy will grow at 6.1 percent in 2023, a 0.2 percentage point upward revision compared with the April projection, reflecting momentum from stronger-than-expected growth in the fourth quarter of 2022 as a result of stronger domestic investment. IMF said in the latest update of the World Economic Outlook that growth in …

IMF global economic outlook sees slight growth, but inflation still a drag
1 year, 4 months ago

IMF global economic outlook sees slight growth, but inflation still a drag

Associated Press  

WASHINGTON — Global growth will see a slight improvement compared to previous International Monetary Fund projections but “many challenges still cloud the horizon, and it is too early to celebrate,” the organization’s chief economist said Tuesday. IMF economist Pierre-Olivier Gourinchas gave his assessment as the organization projected that global economic growth will slow to an estimated 3% in 2023 and …

IMF projects Indian economy to grow at 6.1% in 2023
1 year, 4 months ago

IMF projects Indian economy to grow at 6.1% in 2023

The Hindu  

The IMF on July 25 projected a growth rate of 6.1% for India in 2023, which is a 0.2 percentage point upward revision compared with the April projection. “Growth in India is projected at 6.1% in 2023, a 0.2 percentage point upward revision compared with the April projection,” it said in its latest update of the World Economic Outlook. Inflation …

Britain faces years of stagnation because of high interest rates, economists warn
1 year, 5 months ago

Britain faces years of stagnation because of high interest rates, economists warn

The Telegraph  

Britain is facing a prolonged economic slump caused by higher interest rates, economists have warned, with the battle against inflation set to weigh on growth for years to come. In its latest quarterly update, the group said the economy is set to grow by 0.8pc next year, less than half its previous prediction of 1.9pc. Martin Beck, chief economic adviser …

US economic growth for last quarter is revised up to a still-tepid 1.3% annual rate
1 year, 6 months ago

US economic growth for last quarter is revised up to a still-tepid 1.3% annual rate

Associated Press  

WASHINGTON — The U.S. economy grew at a lackluster 1.3% annual rate from January through March as businesses wary of an economic slowdown trimmed their inventories, the government said Thursday in a slight upgrade from its initial estimate. The steady slowdown in the nation’s economic growth is a consequence of the Federal Reserve’s aggressive drive to tame inflation, with 10 …

Inflation inches up in Europe ahead of interes rate decision
1 year, 7 months ago

Inflation inches up in Europe ahead of interes rate decision

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Higher Interest Rates Drive U.S. Economy Slowdown To 1.1% Rate
1 year, 7 months ago

Higher Interest Rates Drive U.S. Economy Slowdown To 1.1% Rate

Huff Post  

LOADING ERROR LOADING WASHINGTON — The U.S. economy slowed sharply from January through March, decelerating to just a 1.1% annual pace as higher interest rates hammered the housing market and businesses reduced inventories. Yet the central bank’s policymakers are aiming for a so-called soft landing: Cooling growth enough to curb inflation yet not so much as to send the world’s …

US economy slows sharply in January-March quarter
1 year, 7 months ago

US economy slows sharply in January-March quarter

Al Jazeera  

The US economy slowed sharply from January through March, decelerating to just a 1.1 percent annual pace as higher interest rates hammered the housing market and businesses reduced their inventories. “We continue to expect the drag from higher interest rates and tightening credit conditions to push the economy into a mild recession soon.″ Many economists have said the cumulative impact …

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