https://www.nytimes.com/2022/09/26/business/global-economy-oecd-forecast.htmlName: The New York Times
Date: 09/26/2022According to the Organization for Economic Cooperation and Development, the war between Ukraine and Russia has resulted to great impacts on the global economy. Economies around the globe are expected to slow down more than expected according to a new forecast from the OECD. The world economy is slowing down at an alarming rate according to a new forecast from the Organization for Economic Cooperation and Development. The organization released the updated forecast on November 29th, 2015, which predicts that developing economies will contract more than anticipated in 2016 and especially 2018 with only Asia set to avoid this fate slightly in 2017.
According to analysts that spoke with Reuters, countries including Brazil and Argentina could contract by 0.4% over the next three years because of these economic impacts of Ukraine-Russia war. Additionally, China’s GDP growth will also decrease due to financial deleveraging policy applied by authorities.
According to this article Europe is the most vulnerable region where numerous countries face the threat of recession. The most affected countries will be Greece, Portugal, Cyprus, Italy and Spain. In total, the European economy is expected to contract by 0.2% in 2016.
According to this article each year the OECD releases a forecast for the world economy based on its members’ current economic policies and domestic fiscal circumstances. The OECD expects this year’s global growth of 3.3% to decline to 2.9% in 2017. The decline is also due to slower growth in euro area countries and a negative outlook for North America and Japan owing to troubles related with emerging markets.
High price of food and energy have led to increased inflation causing the slowdown of the world economy. The OECD expects the consumer prices to increase by 1.6% this year and next. The OECD also expects unemployment rates to rise around the world, especially in Greece and Portugal where people are expected to become unemployed due to financial crisis and austerity measures.