War will drive inflation up and growth down for next year - OECD

War will drive inflation up and growth down for next year - OECD
# 08 June 2022 16:11 (UTC +04:00)

The cost of the war in Ukraine will continue to drive up inflation and dampen growth for at least the next year, according to a forecast from the Organisation for Economic Co-operation and Development, APA reports citing BBC.

The OECD is a group of 38 countries, including some of the world's biggest economies, which work together with the aim of developing policies to promote sustainable economic growth.

Ongoing fighting since the Russian invasion and tough sanctions against Moscow have helped lead to increasing food and energy prices.
The OECD thinks global growth will drop from 4.5% to 3% and expects inflation in some member countries to reach 9% - double pre-war forecasts.
But, Laurence Boone, — the organisation's chief economist, tells the BBC there are reasons to be slightly optimistic.

"Global growth of 3% is still very healthy," she says. "Employment is high, unemployment rates are low. It is true we have inflation higher than expected for a while. But we don't expect this pressure to continue rising, so that means we will see inflation decelerating over the course of 2023."
She says the removal of Covid-era support policies in some countries will see prices come down.

#
#

THE OPERATION IS BEING PERFORMED