And the culprit is insane anti oil and gas developement policies and ESG. Enjoy your inflation and tell yourself you are saving the planet.
'We are not predicting a recession, but we are certainly projecting a period of pronounced weakness'PARIS — The global economy should avoid a recession next year but the worst energy crisis since the 1970s will trigger a sharp slowdown, with Europe hit hardest, the OECD said, adding that fighting inflation should be policymakers’ top priority.
It forecast that world economic growth would slow from 3.1 per cent this year – slightly more than the OECD foresaw in its September projections – to 2.2 per cent next year, before accelerating to 2.7 per cent in 2024.
The OECD predicted a contraction of 0.3 per cent next year in regional heavyweight Germany, whose industry-driven economy is highly dependent on Russian energy exports – less dire than the 0.7 per cent slump expected in September.
Even in Europe outlooks diverged, with the French economy, which is far less dependent on Russian gas and oil, expected to grow 0.6 per cent next year. Italy was seen eking out 0.2 per cent growth, which means several quarterly contractions are probable.
The U.S. economy was set to hold up better, with growth expected to slow from 1.8 per cent this year to 0.5 per cent in 2023 before rising to 1.0 per cent in 2024. The OECD had previously expected growth of only 1.5 per cent this year in the world’s biggest economy and its estimate for 2023 was unchanged.
China, which is not an OECD member, was one of the few major economies expected to see growth pick up next year, after a wave of COVID lockdowns. Growth there was seen rising from 3.3 per cent this year to 4.6 per cent in 2023 and 4.1 per cent in 2024, compared with previous forecasts of 3.2 per cent in 2022 and 4.7 per cent for 2023.
While many governments had already spent heavily to ease the pain of high inflation with energy price caps, tax cuts and subsidies, the OECD said the high cost meant such support would have to be better targeted going forward.
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