In light of the slowdown in the global economy, Germany remains on the podium of the worst G20 countries.
The latest update on global growth and the growth of major powers comes from the OECD, which estimates a Global recovery reaches 2.7% in 2024, after already expanding “below average” by 3% this year. Barring 2020, when Covid hit, this will be a milestone Weakest annual expansion Since the global financial crisis.
In this bleak scenario, which is exacerbated by the continued rise in interest rates by central banks,… Germany will see its crisis worsen With Argentina on the verge of collapse, it will be the only contracting country among the G20.
Germany and Argentina black G20 shirts
Facing Germany this year It is the only contraction among all G20 economiesExcept for Argentina, according to the OECD, which lowered its forecasts until 2024.
It should be noted that the Latin American country is facing a record inflation of 124% and a significant devaluation of the national currency.
The Eurozone country will be subject to GDP declines by 0.2% in 2023down from previous expectations of recessionThe Paris-based organization said in new forecasts issued on Tuesday. It is then expected to grow by just 0.9% in 2024, down from a 1.3% forecast in June.
The German central bank expects production to decline by 0.3%, and this week warned of the need to address a number of deep challenges facing the business model to boost its long-term prospects.
The Organization for Economic Cooperation and Development reported The general fragility of Europe and has Italy downgraded and the entire eurozone, but it highlighted Germany’s weakness in particular.
Germany’s economic challenges were primarily caused by a combination of an energy crisis caused by the withdrawal of Russian gas supplies and a lack of demand from China.
But the warning was general. The Paris-based organization warned that risks to its outlook are tilted to the downside as past interest rate hikes may have a stronger-than-expected impact and inflation may persist, requiring further monetary tightening. And he defined The difficulties facing China A “major risk” to global production.
By analyzing regional and national forecasts, the OECD lowered its growth forecasts for the euro area for this year and next. While the US expansion will be stronger than expected in June, it will slow to 1.3% in 2024 from 2.2% in 2023.
the Growth cuts This was particularly evident for China, where output is expected to rise less than 5% next year due to weak domestic demand and structural tensions in property markets. The scope of effective political support in China may also be more limited than in the past, the OECD said.
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