Persistent inflation, higher interest rates will weigh on global economy, OECD predicts

[Omaha Steve]

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 Russia’s 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 Russia’s 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]

1. persistent inflation where some corporate profits are way up!

something is out of whack there. Kind of a mundane repetitive topic for LBN.

[Alexander Of Assyria]

2. AP is on pro fascist election watch...mention inflation, war and usual stuff, the booming economy

must get the last sentences no one will read.

[IronLionZion]

3. They want a recession really bad

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]

4. Persistent corporate greed is dying to cause a recession. We need to tax these fuckers REALLY BIG.

[MichMan]

5. Won't that cause prices to go up even more?

[onecaliberal]

6. Not if we have governments who go after corporations who price gouge.

[progree]

7. World Bank is a bit gloomier: 2.1% growth this year, vs. OECD's 2.7%

From the OP's article:

It was a more optimistic outlook than the World Bank gave Tuesday, citing similar risks in its expectation for 2.1% global growth this year. That was still an upgrade from its January forecast of 1.7%.

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 Ukraine’s border in early 2021.