The OECD also warned that almost all countries have budget deficits and higher debt levels than before the pandemic as they propped up their economies to withstand the shocks of Covid restrictions and Russia's war in Ukraine.
"As the recovery takes hold, fiscal support should be scaled back and better targeted," Lombardelli said.
As energy prices, which soared following the Russian invasion of Ukraine, fall further, government should withdraw schemes aimed at supporting consumers, the OECD said.
The OECD raised its 2023 growth forecasts for the United States, the world's biggest economy, to 1.6 percent and China, the second biggest, to 5.4 percent -- both an increase of 0.1 percentage points.
The eurozone also got a slight 0.1-point bump to 0.9 percent.
Britain was upgraded out of recession territory, with growth now forecast at 0.3 percent instead of a contraction.
The OECD, however, sharply lowered the outlook for Germany, with zero growth now expected for Europe's economy while Japan's GDP will grow 1.3 percent, a slight downgrade.
Source: AFP
