In its new Global Outlook, the Organization for Economic Cooperation and Development (OECD) has warned that the efforts of central bankers to gain control over the world’s soaring inflation is risking plunging the economies of the developed countries into recession next year.

Released earlier this week, the outlook warned that the tightening of the monetary policies across the globe since early in 2022 has slowed the domestic growth of the various nations where it has occurred, as interest rates in many of those countries continue to increase.

Despite forecasting a “soft landing” for the global economy, the OECD warned that there are “pretty high” risks to that forecast as a result of the actions of policymakers. The OECD’s chief economist, Clare Lombardelli, said, “It is unclear how much of the past tightening has fed through and how much is yet to come.”

The outlook predicted that the 38 member states of the OECD are predicted to grow by 1.7% in 2023 and 1.4% in 2024. Meanwhile the global economy is forecast to increase by 2.9% in 2023 and 3% in 2024, after getting a kick from the growth of non-members India and China.

The outlook predicted that the worst performing developed economy this year would be Germany, where economic activity would contract by 0.1%, before it recovers, growing 0.6% in 2024. This year the outlook sees the 20 member nations of the Eurozone expanding by 0.6% this year, compared to 2.4% in the US.

The OECD also cited the risks of the Israel-Hamas conflict spilling over into a wider conflict in the region. It said, “This could result in significant disruptions to energy markets and major trade routes, and additional risk repricing in financial markets, that would slow growth and add to inflation.”