By Scott Kanowsky
Investing.com - The Organization for Economic Co-operation and Development has lowered its global growth forecast for 2022, as the group warned that the war in Ukraine will take a "hefty" toll on the world economy.
The OECD now expects global real GDP growth this year to be at 3%, down from its estimate of 4.5% in December. The Paris-based organization projects the figure will fall further to 2.8% in 2023.
In a statement, OECD Chief Economist and Deputy Secretary-General Laurence Boone said Russia's invasion of Ukraine has led to a recent spike in energy and food prices. She added that this could put particular pressure on low-income countries and Europe, while also impacting "firms' profits and capacity to invest and create jobs."
"The extent to which growth will be lower and inflation higher will depend on how the war evolves, but it is clear the poorest will be hit hardest. The price of this war is high and will need to be shared," Boone said.
At the same time, the OECD flagged that China's zero-COVID policy could also weigh on the global economic outlook by lowering domestic growth and disrupting supply chains.