According to a forecast by the OECD, the organization of industrialized nations, global economic growth will be slowed down in the coming year by Russia’s war of aggression in Ukraine.
The Organization for Economic Cooperation and Development (OECD) announced on Tuesday in Paris that economic growth will only be 2.2 percent in 2023. That is significantly less than expected before the war. In 2024, growth is then expected to rise to 2.7 percent.
However, the prospects are very uncertain. If there are energy bottlenecks on the markets, growth could be even weaker. “Higher inflation and lower growth are the hefty price the global economy is paying for Russia’s war in Ukraine,” the study said. Fighting inflation must now have top priority. The OECD expects growth of 3.1 percent for the current year.
For Germany, the OECD expects the economy to contract by 0.3 percent in 2023, while it should recover again in 2024 and be around 1.5 percent. Despite weakening demand abroad, export growth will stabilize in 2023 because bottlenecks in the supply chain will ease, it said.
