OECD cuts global economic outlook on Russia-Ukraine war

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London: The Organization on Economic Cooperation and Development (OECD) has said that the Russia-Ukraine war and the energy and food crisis are likely to lead to lower global economic growth and increase inflation this year.

China’s ‘zero-Covid’ policies are also having an impact on the world economy. The Paris-based OECD, which includes most of the rich countries, has expressed the possibility that global economic growth could be 3 per cent in 2022, from 4.5 per cent in December last year.

The OECD consists of 38 members, including the United States, The United Kingdom and several European countries. The OECD has projected inflation to be almost double the previous estimates at 9 per cent. The World Bank, the United Nations and the International Monetary Fund have also expressed similar apprehensions in their economic advances. OECD Secretary General Mathais Korman said the global economy of the Russian war was paying a heavy price. He has warned that the poor will be the worst hit by the economic slowdown.