Global economic growth is slowing more than was forecast a few months ago after Russia's invasion of Ukraine, as energy and inflation crises risk snowballing into recessions in major economies, the OECD said today.
While global growth this year was still expected at 3%, it is now projected to slow to 2.2% in 2023, the Organisation for Economic Cooperation and Development said.
This was revised down from a forecast in June of 2.8%, it added. The Paris-based policy forum was particularly pessimistic about the outlook in Europe - the most directly exposed economy to the fallout from Russia's war in Ukraine.
Global output next year is now projected to be $2.8 trillion lower than what the OECD forecast before Russia attacked Ukraine - a loss of income worldwide equivalent in size to the French economy. "The global economy has lost momentum in the wake of Russia's unprovoked, unjustifiable and illegal war of aggression against Ukraine," OECD Secretary-General Mathias Cormann said. "GDP growth has stalled in many economies and economic indicators point to an extended slowdown," he added.