The Organization for Economic Co-operation and Development (OECD) has issued a warning about a slowdown in global economic growth. The organization’s latest economic outlook points to a weaker-than-expected recovery, primarily due to the war in Ukraine and the continued rise in inflation.

Key Factors Contributing to the Slowdown

• War in Ukraine: The conflict has disrupted supply chains, particularly for energy and food, leading to higher prices and increased uncertainty.
• Inflation: Persistent inflationary pressures are eroding purchasing power and forcing central banks to tighten monetary policy.
• Supply Chain Disruptions: Ongoing disruptions are hindering production and trade, further exacerbating inflationary pressures.

Revised Growth Projections

The OECD has revised its global growth forecast downward for both this year and next. The organization now expects significantly slower economic activity compared to its previous projections.

Policy Recommendations

The OECD is urging governments to take targeted measures to support vulnerable households and businesses. It also emphasizes the importance of international cooperation to address the global challenges of inflation and energy security.