Stock Groups

OECD Cuts Global Growth Outlook Amid Ukraine Conflict Concerns -Breaking


© Reuters.

By Scott Kanowsky – The Organization for Economic Co-operation and Development has lowered its global growth forecast for 2022, as the group warned that the war in Ukraine will take a “hefty” toll on the world economy.

Global real GDP growth is now expected to reach 3% in 2018, a drop from the December estimate of 4.5%. According to the Paris-based organisation, this figure will drop further to 2.8% by 2023.

Laurence Boone, OECD Chief Economics Officer and Deputy Secretary General stated that Russia’s invasion in Ukraine caused a spike in food and energy prices. The invasion of Ukraine could cause economic distress in Europe and low-income countries, as well as a decline in the profits of firms and their capacity to create new jobs and invest.

It will all depend on how this war develops. But it is obvious that the worst will hit. Boone stated that the price for this war was high, and must be shared.

OECD also warned that China’s Zero-COVID policies could have a negative impact on global economic prospects by lowering domestic growth, disrupting supply chains and reducing international trade.