OECD raises 2023 global growth outlook, cuts 2024

PARIS (Reuters) - A stronger than expected U.S. economy is helping to keep a global slowdown in check this year but a weakening Chinese economy will prove to be a bigger drag next year, the OECD forecast on Tuesday.

After expanding 3.3% last year, global gross domestic product growth is on course to slow to 3.0% this year, the Organisation for Economic Development said in the latest update of its forecasts for major economies.

While that was an upgrade from 2.7% in the OECD's June outlook, global growth was expected to slow to 2.7% in 2024 - down from its estimate of 2.9% in June.

The Paris-based body said it now expected the U.S. economy to grow 2.2% this year rather than the 1.6% it forecast in June as U.S growth proves more resilient than most economists expected in the face of a series of rate hikes.

Nonetheless, it was likely to slow next year to 1.3%, though that was better than the 1.0% for 2024 expected in June.

The improved U.S. outlook for this year helped offset weakness in China and the euro zone, dragged down by Germany - the only major economy expected to be in recession.