Paris, 26 September 2022 (TDI): Organization for Economic Co-operation and Development (OECD) Acting Chief Economist Alvaro Santos Pereira presented today the report on OECD Interim Economic Outlook: Paying the Price of War. The OECD Interim Economic Outlook Report 2022 warns of a pervasive global economic slowdown.

Brief outlook of report

According to the latest report of OECD, the global economy has lost momentum in the wake of Russia’s war of aggression in Ukraine. Moreover, the war is continuously dragging down growth and putting additional upward pressure on inflation worldwide.

The report claims that global growth is projected at a modest 3% in the second half of 2022, before slowing further in 2023 to annual growth of just 2.2%.

The Russia-Ukraine war has further pushed up energy prices, especially in Europe. It aggravates inflationary pressures at a time when the cost of living was already rising rapidly around the world due to the lingering impacts of the Covid-19 pandemic.

OECD Secretary-General Mathias Cormann said during a presentation of the Outlook, “The global economy has lost momentum in the wake of Russia’s unprovoked, unjustifiable and illegal war of aggression against Ukraine. GDP growth has stalled in many economies and economic indicators point to an extended slowdown”.

The OECD points further to substantial uncertainty about the economic outlook, with significant downside risks. These include the possibility of further food and energy price spikes, which could push many people into poverty, as well as the possibility of gas shortages as winter progresses in the Northern hemisphere.

In addition, reducing energy consumption and diversifying supply sources will be critical to avoid shortages, which would push global energy prices up, damage confidence, likely worsens financial conditions, and require a temporary period of enforced reduction of gas used by businesses.

Also read: OECD emphasizes on dependable energy supplies

About OECD

The Organization for Economic Co-operation and Development (OECD) is an international organization that works to build better policies for better lives.

The organization together with governments, policymakers, and citizens, works on establishing evidence-based international standards. It also finds solutions to a range of social, economic, and environmental challenges.