Economic Buzz: OECD Projects Global Economic Growth Rate At 3% In 2022

9 Jun 2022 , 12:33 PM

According to the Organisation for Economic Co-operation and Development (OECD) latest economic outlook, global growth is set to slow sharply this year than previously forecast as the war in Ukraine triggered a cost-of-living crisis and the zero-COVID policy of China added to supply chain disruptions. The global economy will expand 3.0 percent in 2022, which is sharply slower than the 4.5 percent projected in December, OECD said in its outlook. The growth rate is seen at 2.75 percent in 2023. The hardest-hit economies are in Europe, which is highly exposed to the war through energy imports as well as refugee flows. Russias invasion of Ukraine has also dampened hopes of a quick end to rising inflation from Covid19-related supply bottlenecks seen across the global economies. As Russia and Ukraine are major suppliers in many commodity markets, the war has lifted commodity prices sharply. The OECD cautioned that without action, there is high risk of a food crisis.Powered by Commodity Insights