The greatest energy crisis since the 1970s will cause a dramatic slowdown, with Europe being most impacted, the OECD said, adding that policymakers’ first goal should be to combat inflation. The world economy should escape going into recession next year.
Although there are many different national outlooks, the Organisation for Economic Cooperation and Development stated on Tuesday that the British economy is expected to lag behind significant peers.
Compared to the OECD’s September predictions, it predicted that global economic growth would fall from 3.1% this year to 2.2% next year before picking up again to 2.7% in 2024.
According to the OECD, the global downturn is having an unequal impact on countries, with Europe suffering the most as a result of Russia’s conflict in Ukraine, which is hurting commercial activity and raising energy prices.
Outside of the euro zone, it was predicted that the British economy will contract by 0.4% in 2019 as a result of rising interest rates, soaring prices, and low confidence.