The Russian invasion risks costing a world growth point.
Given the great uncertainty about the evolution of the conflict in Ukraine and its collateral economic effects, the OECD refrains from publishing updated growth forecasts. The international organization based in Paris nevertheless ventures to assess the impact of the war, which could cut global growth by 1 percentage point this year.
“Economic upheavals are profound and set to continue“, warned during a press conference the secretary general, Mathias Cormann. Due to the close commercial links and its high energy dependence on Russia, Europe will be the most affected region. The loss of GDP could reach around 1.4% for the euro zone.
Read alsoUkraine: European leaders show caution in the face of risks to growth
The OECD also quantifies the increase in inflation due to the war, linked to the soaring prices of energy and agricultural raw materials, of which Russia and Ukraine are major suppliers. “Russia provides 16% of the world’s natural gas supplies…
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