War Puts the Brakes on Global Economic Recovery

The global economy was on course for recovery before the war in Ukraine - but this is now being severely impacted by Russian aggression and topped off by disruptions in global supply chains. As this infographic based on the latest OECD Economic Outlook shows, the prospects for economic growth in the world's major economies are now much bleaker than they were in the last forecast from December 2021. For Germany, the OECD has revised its growth forecast downward by 2.2 percentage points to 1.9 percent. In this selection of countries, only Russia has been hit harder, with nominal GDP expected to fall by 10 percent year-on-year in 2022.

The OECD expects growth in almost all economies to be significantly weaker than expected six months ago. Many of the hardest hit countries will be in Europe, which is heavily exposed to the war through energy imports and refugee flows. Countries around the world would be hit by higher commodity prices, adding to inflationary pressures and dampening real incomes and spending, further hampering the recovery. This slowdown in growth, the report says, is a price of war that would be paid through lower incomes and fewer job opportunities.