(MENAFN) The Organization for Economic Cooperation and Development stated on Monday in a dimming outlook that Russia's conflict in Ukraine and the coronavirus epidemic are slowing down global economic growth more than anticipated and causing prices to rise and remain high into next year.
According to the Paris-based group, global growth is only going to reach a modest 3 percent this year before further falling to only 2.2 percent the following year, which would result in a loss of USD2.8 trillion in global production by 2023.
With Russia serving as a significant supply of electricity and fertilizer, and both nations being big exporters of grain, the war in Ukraine has increased the price of food and energy globally at a time when millions of people are already going hungry. Large portions of China's economy have been shut down as a result of coronavirus lockdowns.
Mathias Cormann, the secretary general of the OECD, told reporters in Paris, “the war, the burden of high energy and food prices, as well as zero COVID-19 policies from China, mean that growth will be lower, and inflation will be higher and more persistent.”
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