Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

OECD slashes growth outlook to 3%, but sees limited stagflation risk

by
June 9, 2022
in Investing News
0
OECD slashes growth outlook to 3%, but sees limited stagflation risk
0
SHARES
8
VIEWS
Share on FacebookShare on Twitter
REUTERS

PARIS — The war in Ukraine has made the growth outlook far bleaker even though the global economy should avoid a bout of 1970s-style stagflation, the OECD said on Wednesday, slashing its growth forecasts and jacking up its inflation estimates.

The world economy is set to grow 3% this year, much less than the 4.5% expected when the Organization for Economic Cooperation and Development (OECD) last updated its forecasts in December.

Growth will then slow further next year, easing to 2.8%, down from a previous forecast of 3.2%, the Paris-based policy forum said in its latest Economic Outlook.

“Russia’s war is indeed posing a heavy price on the global economy,” OECD Secretary General Mathias Cormann told a news conference.

“Global growth will be substantially lower with higher and more persistent inflation,” he said, adding the OECD was not forecasting recession although there were numerous downside risks to the outlook.

Meanwhile, any quick relief from soaring costs is unlikely, with inflation expected to peak at 8.5% this year in OECD countries before slipping to 6.0% in 2023. Previously the OECD had expected inflation to peak at 5% before gradually receding to 3% in 2023.

Despite the lower growth and higher inflation outlook, the OECD saw a limited risk of “stagflation” like that seen in the mid-1970s, when the oil price shock triggered runaway inflation and surging unemployment.

In particular, developed economies are much more driven by services and less energy-intensive than in the 1970s and central banks have a freer hand to fight inflation, independent of governments more concerned about unemployment.

“To mitigate the cost of inflation, the burden will need to be split between profits and wages, that is about employers and employees negotiating to share this cost in a fair way and avoid a wage price spiral,” OECD chief economist Laurence Boone said.

DOWNGRADED OUTLOOKThe OECD said it saw a strong case for steady removal of monetary policy stimulus in high-inflation economies, such as the United States and eastern Europe.

As the pandemic-related fiscal boost expires, the US economy was seen growing 2.5% this year before slowing to 1.2% in 2023, down from previous forecasts of 3.7% and 2.4% growth, respectively.

China’s economy, which has been hit by a fresh wave of COVID-19 lockdowns, is seen growing 4.4% this year and 4.9% next, down from 5.1% previously expected in both years.

More exposed to Russian energy imports and the fallout from the war in Ukraine, the euro zone economy was seen growing 2.6% this year and 1.6% in 2023, down from forecasts of 4.3% and 2.5% respectively. — Reuters

ShareTweetPin

Related Posts

Stocks decline on profit taking, recession fears
Investing News

Stocks decline on profit taking, recession fears

August 23, 2022
Peso climbs vs dollar as RTB offer starts
Investing News

Peso climbs vs dollar as RTB offer starts

August 23, 2022
PNR cancels bids for 3 projects after finding them ‘non-feasible’
Investing News

PNR cancels bids for 3 projects after finding them ‘non-feasible’

August 23, 2022
Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Next Post
In shadow of Ukraine war: US and China set to clash at Asian security meeting

In shadow of Ukraine war: US and China set to clash at Asian security meeting

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

Euro’s 20-year low leaves ECB facing costly choices

Euro’s 20-year low leaves ECB facing costly choices

July 8, 2022
Garcia named Comelec chairman

Garcia named Comelec chairman

August 1, 2022
Standard Chartered hosts investor roundtable with the BSP in Singapore

Standard Chartered hosts investor roundtable with the BSP in Singapore

June 24, 2022
DAR nominee Estrella to focus on increasing farmer incomes

DAR nominee Estrella to focus on increasing farmer incomes

June 9, 2022
Biden stops short of declaring climate emergency, takes steps on wind power

Biden stops short of declaring climate emergency, takes steps on wind power

July 21, 2022
Lawyers’ group urges Marcos gov’t to cooperate with drug war probe

Lawyers’ group urges Marcos gov’t to cooperate with drug war probe

June 29, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.