The Organization for Economic Co-operation and Development (OECD) said Russia’s war in Ukraine – now in its eighth month – will have a bigger impact on the world economy than previously anticipated.
The OECD on September 26 lowered its forecast for global growth to 2.2 percent for 2023 from 2.8 percent, as it had previously predicted.
“The world economy is paying a high price for Russia’s unprovoked and illegal war on Ukraine,” the OECD said in its regular report on world economic outlook.
“With the impact of the COVID-19 pandemic still having an effect, the war is hampering growth and adding pressure to prices, especially those of food and energy.
Gross Domestic Product at the global level has stagnated in the second quarter of 2022 and a decline has been recorded in the G20 economies,” the report added.
The report said that high inflation is continuing more than expected.
The inflation rate in the first half of 2022 was the highest since the 1980s. “With recent indicators deteriorating, the outlook for the global economy has darkened,” the OECD said.
Russia started the invasion of Ukraine on February 24.
