Persistent inflation, higher interest rates will weigh on global economy, OECD predicts
Source: AP
By DAVID McHUGH 2 hours ago
FRANKFURT, Germany (AP) The global economy must steer through a precarious recovery this year and next as inflation keeps dragging on household spending and higher interest rates weigh on growth, banks and markets.
That was the takeaway Wednesday from the latest economic outlook by the Paris-based Organization for Economic Cooperation and Development. The group, made up of 38 member countries, raised its growth forecast this year to 2.7% from an estimated 2.2% in November and foresaw only a tiny acceleration to 2.9% next year.
The rebound from the COVID-19 pandemic and energy price spike tied to Russias invasion of Ukraine is likely to be weak by past standards, with average growth of 3.4% recorded in the pre-pandemic years 2013-2019.
The path ahead is fraught with risks, from escalation of Russias war in Ukraine with a dam collapse Tuesday that the sides blamed on each other to debt troubles in developing countries and rapid interest rate hikes having unforeseen effects on banks and investors.
Read more: https://apnews.com/article/global-economy-oecd-inflation-interest-rates-8d99342e045222b710883e06dba0bb53
SouthernDem4ever
(6,454 posts)something is out of whack there. Kind of a mundane repetitive topic for LBN.
Alexander Of Assyria
(7,839 posts)must get the last sentences no one will read.
IronLionZion
(45,255 posts)They love saying the prices of things have to increase but don't want the price of labor to increase. All aboard the cheap labor express!
They love it when "they're stealing your jobs" not "nobody wants to work anymore". The great recession gave rise to the MAGA movement, militia movement, and all sorts of idiocy.
onecaliberal
(32,478 posts)MichMan
(11,781 posts)onecaliberal
(32,478 posts)progree
(10,864 posts)From the OP's article:
Energy prices have fallen to pre-invasion levels, helping ease the worst of the recent outbreak of inflation. But those costs are still higher than they were before Russia began massing troops on Ukraines border in early 2021.