The growth of the world economy will slow down in 2023.
Russian aggression against Ukraine hit the world economy, write the authors of the published report of the Organization for Economic Cooperation and Development (OECD) “Payment for War”.
According to forecasts published in the report, the growth of the global economy will decrease from 3 percent in 2022 to 2.2 percent in 2023. Among G-20 economies, the worst forecast is for Russia, which is expected to shrink by 4.5 percent in 2023. Apart from Russia, the negative forecast is only for Germany – the country's economy will shrink by 0.7%.
In turn, economic growth in the Eurozone should be 0.3%, and in the USA – 0.5%. In China, economic growth is expected to slow to 3.2% this year due to the coronavirus pandemic and a weak real estate market, but political support is expected to lead to a better result (4.7%) in 2023.
“The war significantly increased energy and food prices, increasing inflationary pressures at a time when the cost of living was rising rapidly around the world,” the report said.
Its authors emphasize that the forecasts are prone to high uncertainties and may worsen due to more severe energy shortages, especially gas.
“The consequences of the war are a threat to global food security, especially in combination with subsequent extreme weather events due to climate change,” they add.
Today, #OECD Secretary General @MathiasCormann & Acting Chief Economist @santospereira_a presented the OECD Interim Economic Outlook: Report the price of War.
Read the full publication here ➡ https://t.co/sp4iIVyst8 #EconomicOutlook
— OECD ➡️ Better policies for better lives (@OECD) September 26, 2022
Read also: Budget -2023: The Cabinet announced the expected level of GDP, dollar exchange rate and inflation
The G-20 international forum dealing with global economic issues consists of the European Union and 19 countries: Saudi Arabia, Argentina, Australia, Brazil, China, France, India, Indonesia, Japan, Canada, South Korea, Mexico, Germany, Africa, Russia, the USA, Turkey, Great Britain and Italy.
Earlier it was reported that the invasion of Ukraine slowed down the Russian economy for four years.
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About economic challenges during the war, read Yulia Samaeva's article “Wartime economy or crisis economy?”
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