The OECD has forecasted {that a} stronger-than-expected US financial system will assist to mitigate a world slowdown this yr. Nevertheless, it warned {that a} weakening Chinese language financial system would have a bigger affect subsequent yr. World gross home product progress is projected to gradual to three.0% this yr, in comparison with 3.3% progress in 2020. The OECD additionally downgraded its forecast for world progress in 2024 to 2.7%, from its earlier estimate of two.9%. The group expects the US financial system to develop 2.2% this yr, up from its earlier forecast of 1.6%. Nevertheless, it predicts that progress will gradual to 1.3% subsequent yr. The Chinese language financial system is anticipated to gradual from 5.1% progress this yr to 4.6% subsequent yr. The OECD additionally lower its progress outlook for the euro zone, however forecasted a pick-up in progress subsequent yr as Germany returns to progress. Regardless of weak progress subsequent yr, the OECD recommends that central banks hold rates of interest excessive till inflationary pressures ease.