Wednesday, July 17, 2024

ECONOMY | 19-09-2023 14:02

OECD: Argentina to suffer steepest recession, highest inflation of G20 nations

Organisation for Economic Cooperation and Development says Argentina's GDP will contract by 2% this year, while suffering 118.6% inflation in 2023.

The Organisation for Economic Co-operation and Development (OECD) has worsened its forecasts for Argentina, warning that the nation will be the G20 country to suffer the deepest recessions both this year and next.

According to an OECD report released on Tuesday, the agency estimates that Argentina's GDP will fall two percent in 2023 and contact by 1.2 percent in 2024. Meanwhile, inflation will close out the year at 118.6 percent and next year could run even higher, reaching 121 percent..

The OECD's new forecast for the country's economy is slightly lower than what it had anticipated last June. Along with Argentina, only Germany will have two consecutive years of recession, but with more moderate rates: minus 0.2 percent in both 2023 and 2024.

Joining Argentina on the horror list of inflationary economies is Turkey, which will also suffer double-digit inflation, but with a downward trend: 52.1 percent in 2023 and 39.2 percent in 2024.

Argentina's situation is the opposite of that of most other large Latin American economies, such as Brazil, which will grow by 3.2 percent this year, or Mexico, which will do the same, with 3.3 percent, according to OECD projections.

The global economy will grow at a rate of three percent, said the OECD, raising  its previous forecast by three-tenths of a percentage point. However, it was less optimistic over 2024. 

"The impact of tighter monetary policy is becoming increasingly visible," the Paris-based international organisation said in its latest report on the outlook for global growth and inflation.

Global growth will be stronger in 2023 in part thanks to the United States, whose economy could grow by 2.2 percent. 

Among the BRICS nations, as well as Brazil, India will grow by 6.3 percent, Russia by 0.8 percent and South Africa by 0.6 percent. China will also see a GDP boost, but by 5.1 percent, less than previously anticipated.


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