Ukraine War Continues to Slow Global Growth, New Report Says

Higher inflation and slower growth are the heavy price that the global economy is paying for Russia’s war in Ukraine, the Organization for Economic Cooperation and Development said on Tuesday, the New York Times reported. Record inflation, fueled by the largest energy crisis since the 1970s, is creating financial hardship for millions, the Paris-based organization said in a new report. Governments and policymakers must make it their top priority to bring inflation down, while shielding households and businesses with targeted spending, the O.E.C.D. added. “Navigating the economy from the current situation to a sustainable recovery will be challenging,” Mathias Cormann, the secretary-general of the O.E.C.D., said in a news briefing. “Risks remain tilted to the downside, and economic activity may turn out even weaker if energy prices rise further or if energy disruptions affect gas and electricity markets in Europe and Asia,” he said. “An end to the war and a just peace for Ukraine would be the most impactful way to affect the economic outlook,” Mr. Cormann added. “But until this happens governments should deploy measures for a stronger and sustainable recovery.” The global economy won’t tumble into an outright recession. But global growth will decline to 2.2 percent in 2023 from 3.1 percent this year, before rebounding to a 2.7 percent pace in 2024, the report forecast. Inflation in most of the world’s developed and developing economies will cool slightly, to 6.4 percent next year from a blistering 9.4 percent rate in 2022, but continue doing economic damage. Read more.