PARIS – The OECD has warned that the world economy will pay a “hefty price” for Russia’s inva­sion of Ukraine as it slashed its 2022 growth forecast and pro­jected higher inflation. “The world is set to pay a hefty price for Russia’s war against Ukraine,” wrote the OECD’s chief economist and deputy secretary-general, Lau­rence Boone, adding that a “hu­manitarian crisis is unfolding before our eyes”. At the time, it said the conflict could cut global GDP growth by “over one percentage point”. The World Bank revised its own figures on Tuesday, lower­ing its global growth forecast from 4.1 percent to 2.9 percent. The OECD cut its growth forecast for the United States from 3.7 percent to 2.5 percent and that of China, the world’s second biggest economy, from 5.1 percent to 4.4 percent.

Source: The Nation June 12, 2022 06:38 UTC