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“World paying the price of war”, Global GDP decline: OECD

September 27, 2022 (MLN): The world is facing a recession due to Russia’s illegal war of aggression against Ukraine, and it’s putting additional pressure on prices above all for food and energy. The world GDP forecast for 2023 is 2.2%, a press release issued by OECD showed on Monday.

OECD noted that the “World paying the price of war”, despite Covid-19 infections dropping worldwide. The forecasted GDP annual growth for 2023 is just 2.2% less than the last projected GDP on December 21 and it is projected at least $2.8trillion.

The forecasted GDP for the US in 2023 is 0.5% less than the last projected 3.4% in 2022, China 4.7% in 2023 compared to 3.2% in 2022, Saudi Arabia 6% in 2023 compared to 9.9% in 2022, G20 countries 2.2% in 2023 as compared to 2.8% in 2022.

Many businesses worldwide face high freight, labor, and energy cost because inflationary pressures are broadening in food and energy, and in the USA, the UK, and Japan price indexes show inflation above 4%.

OECD said, “inflation in the 1HY22 was at its highest since the 1980s, the earlier world’s biggest economy the US increases its monetary policy and it is expected that annual inflation in 2023 will remain well above central bank targets almost everywhere”.

Currently, in China, the inflation rate is stable Brazil and Mexico will see more hikes in the inflation rate, and the high inflation rate is noticed in Turkey, Argentina, and Albeit.

The country’s economy has been hit the hardest in Europe as it has relied heavily on Russian supplies of natural gas, which Moscow has cut significantly in suspected retaliation to Western sanctions.

Copyright Mettis Link News

Posted on:2022-09-27T13:59:10+05:00

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