Charting the global economy: Growth is slowing around the world
OECD warned.
Growth is losing momentum in many countries and won’t edge up until 2025, when real incomes recover from the inflation shock and central banks will have begun cutting borrowing costs, according to the organization.
Inflation eased in Europe, Brazil and Australia in recent readings but remains too high for central bankers’ comfort. Meantime, price pressures accelerated in Japan’s service sector, as well as in Zimbabwe, where officials recently adopted a new inflation metric.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
World
The Organization for Economic Cooperation and Development forecasts global gross domestic product to expand only 2.7% next year after an already weak 2.9% in 2023.
The pace will only pick up to 3% in 2025, according to the assessment.
Europe
Euro-zone inflation cooled more than expected, putting the 2% target in sight as investors step up bets that the European Central Bank will cut interest rates sooner than officials suggest. ECB officials are adamant, however, that monetary policy must remain tight to ensure inflation makes it all the way back to 2%.
Sweden’s economy fell into a recession in the third quarter as inventories declined and households cut back spending amid increasing borrowing costs and rising prices. Most forecasters now expect the largest Nordic country to see its output contract for two consecutive years, and the European Commission forecasts that Sweden will be the only member state that will see its output decline next year.
Asia
Japan’s business service prices increased by the most in over three decades when ignoring sales tax hikes over the years, throwing some doubt over the Bank of
