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Opalesque Geneva: According to the OECD, the economic implications of the war in Ukraine could reduce global GDP growth by more than 1 percentage point and push up global consumer price inflation by 2.5 percentage points in the first year. Those implications should be tackled with fiscal support, monetary policy focused on inflation expectations, diversification of energy sources and better efficiency, an increase in food production, and policy dedicated to energy security and green transition.
This month's OECD interim economic outlook focuses on the potential economic and social consequences of the war, which is expected to slow the global recovery from the COVID-19 pandemic and further push up inflation worldwide.
The most important consequence of the war in Ukraine is the lives lost and the humanitarian crisis associated with the huge numbers of besieged and displaced people, says the report.
There are also, however, numerous significant economic implications.
Prior to the outbreak of the war, most key global macroeconomic variables were seen as returning to normality over 2022-23 following the COVID-19 pandemic. Global growth in 2023 was projected to return to pre-pandemic rates. Most OECD economies were expected to get back to full employment by 2023. Inflation was seen as converging on l...................... To view our full article Click here
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