(MENAFN) The Organization for Economic Co-operation and Development (OECD) has dropped its global financial expansion prediction for next year, and cautioned that many European nations might face a downturn in 2023.
An OECD interim report issued on Monday lessened the global GDP expansion prediction from 2.8 percent to 2.2 percent, a decrease it blamed on “Russia’s aggression against Ukraine.”
World GDP 2023 will be more than USD2.8 trillion lower than earlier forecasts, it added.
Inadequate supply diversification and demand decreases could cause shortages that will increase energy costs, dent confidence and financial conditions, and make it necessary for companies to temporarily ration their gas consumption, according to the report.
“Taken together, these shocks could reduce growth in the European economies by over 1.25 percentage points in 2023, relative to baseline, and raise inflation by over 1.5 percentage point,” in agreement with the OECD.
“This would push many European countries into a recession in 2023.”
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