Organization for Economic Co-operation and Development (OECD) Secretary-General Mathias Cormann said he sees evidence of an improvement in the global economic outlook at the beginning of the year. However, he warned that high inflation is still a cause for concern.
"The situation has improved slightly compared to the end of 2022, which was facilitated by the fall in energy and food prices," he said.
In November, the OECD predicted that the global economy would expand by 3.1% in 2022 and 2.2% in 2023, mainly due to the impact of Russia's war in Ukraine, which caused a spike in energy prices.
Despite the fact that energy prices have significantly decreased compared to their peak levels, the OECD said that inflation risks still persist, which will require additional measures from Central Banks.
Cormann said that despite the aggressive tightening of the Fed's monetary policy to curb inflation, the fight against inflation is still ongoing, but in a more sustainable way, with an eye on the data and the impact of past measures.
"We expect central banks around the world to continue to monitor the data and adjust their actions," Cormann added.