JAKARTA. Amid the increasingly challenging global economic condition, Organisation for Economic Co-operation and Development (OECD) once again demoted the global economic growth rate to 2.2% in 2023.

OECD, in its official release today (23/11), mentioned that the world had lost its momentum to grow, as signified by the ever-increasing inflation rate, weakening consumers’ confidence, and higher instability. “The Russia-Ukraine war has triggered substantial price surges, especially in energy-related commodities, boosting the inflation rate even when living costs across the globe has already rapidly increased,” OECD explained, as quoted by Bisnis.

Furthermore, OECD claimed that the global financial condition has been significantly more tense following popular decision of central banks across the world to bump up their interest rates in these past few months. This policy surely affects expenditures sensitive to interest rates, as well as burdens the economic growth of developing countries.

OECD once predicted that the global GDP growth rate will reach 3.1% in 2022. “The global economy is projected to decline to 2.2% in 2023, arriving way below the initial estimation prior to Russia-Ukraine war,” OECD claimed. In 2024, OECD predicts that the global economic growth might reach 2.7%, supported by initial phases of interest rate