An international organization has raised its expectations for global growth in the years 2023 and 2024.

On Friday, the Organization for Cooperation and Development in the economic field raised its expectations for global growth due to the slowing of inflation and China reopening its borders after abandoning its zero-Covid policy. However, despite this recovery, it remains fragile due to significant difficulties faced by some banks.

Currently, the international organization expects a global growth rate of 2.6% for the year 2023 and 2.9% for the year 2024, based on their temporary economic projections.

On Friday, the Organization for Economic Cooperation and Development released these new figures amidst a banking crisis, stating that raising interest rates could continue to expose financial weaknesses related to high indebtedness and overvaluation of certain assets. This comes as several US banks have recently closed or been rescued.

The Organization for Economic Cooperation and Development stated in a statement that signs of the impact of monetary policy tightening have begun to appear in some aspects of the banking sector, especially in regional banks in the United States.

The sudden changes in interest rates and the current market value of bond portfolios may also reveal risks to the longevity of bonds in financial institution models, as evidenced by the collapse of Silicon Valley Bank in March in the United States.

The organization did not consider the difficulties faced by Credit Suisse this week in its report. The collapse of this bank poses a comprehensive threat to the global economy.

However, despite the risks, the Organization for Cooperation and Economic Development expects a gradual improvement in the general economic situation throughout 2023 and 2024, with a slowdown in inflation.

It is expected that the global economy will benefit from the full reopening of China’s borders, and it is anticipated that its activity will recover in 2023.

According to the organization, the rise in commodity prices in G20 countries, which represent about 85% of global GDP, may decrease from 8.1% in 2022 to 45% in 2024.

Compared to its economic predictions in November, global growth has increased by 0.4 percentage points for this year and 0.2 percentage points for the following year.

Germany is expected to avoid recession this year with a growth rate of 0.3%, compared to France’s growth rate of 0.7%. Meanwhile, the United States’ growth rate is predicted to reach 1.5%, exceeding earlier expectations of 0.5%.