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Tuesday, March 5, 2024

Amid concerns about inflation and the conflict in Ukraine, the OECD lowers its 2023 forecast for global economic growth


<p>The worldwide economic growth forecast for 2023 has been lowered downward by the Organization for Economic Cooperation and Development (OECD), falling from 3.3% in 2022 to 2.7%. Increasing inflationary pressures and the continuing crisis in Ukraine are the two main causes of this shift.<img decoding=”async” class=”alignnone wp-image-163353″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-download-2023-09-06t181320.822-11zon.jpg” alt=”theindiaprint.com download 2023 09 06t181320.822 11zon” width=”1237″ height=”795″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-download-2023-09-06t181320.822-11zon.jpg 280w, https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-download-2023-09-06t181320.822-11zon-150×96.jpg 150w” sizes=”(max-width: 1237px) 100vw, 1237px” title=”Amid concerns about inflation and the conflict in Ukraine, the OECD lowers its 2023 forecast for global economic growth 6″></p>
<p>The OECD notes that the conflict in Ukraine is disrupting investment and trade flows and raising energy costs. Additionally, it is undermining trust and hindering global economic growth. Collectively, these effects have caused the growth prediction to be revised lower.</p>
<p>The OECD’s main worry is that of rising inflation. The group predicts that inflation rates will likely stay high in the foreseeable future before beginning to trend downward in 2024.<br />
The OECD continues to believe that a worldwide recession is not imminent in 2023, notwithstanding this modification. The group does, however, issue a warning that the risks to this prognosis are heavily skewed to the negative. Even more severe dampening impacts on global economic development may result from a protracted period of high inflation or a further escalation of the war in Ukraine.</p>
<p>It’s important to note that the OECD’s updated prognosis is consistent with those of other important economic organizations, such as the International Monetary Fund and the World Bank, both of which have lowered their expectations for global economic growth in 2023.</p>
<p>Many nations throughout the globe are likely to suffer as a result of the slowdown in global economic development, especially those that are struggling with heavy debt loads and slow growth rates.</p>
<p>The OECD has urged nations to take preventative action to lessen the effects of this slowdown. These suggestions include giving people and companies assistance via fiscal and monetary policy, as well as making investments in infrastructure and other programs meant to increase productivity.</p>
<p>Even though the year 2023 will face the world economy with severe obstacles, a recession may still be avoided. To achieve this aim, governments and central banks will need to make strong measures to support growth and stop ingrained inflationary pressures from jeopardizing economic stability.</p>
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