The Organisation for Economic Co-operation and Development has sharply downgraded its global growth forecasts for 2022 warning that “the world is set to pay a hefty price for Russia’s war against Ukraine,” News.az reports citing Russian Today.

OECD now expects global growth to be 3% in 2022 — down from 4.5% in its December forecast — and to remain at similar pace for 2023.

“Inflation projections now stand at nearly 9% in OECD countries in 2022, twice what we were previously projecting,” said OECD Chief Economist and Deputy Secretary-General Laurence Boone, adding that “the extent to which growth will be lower and inflation higher will depend on how the war evolves, but it is clear the poorest will be hit hardest.”

The forecast is in line with the World Bank, which said yesterday that it expects global growth to be 2.9% in 2022.

Among the G20 countries, OECD expects the UK to be hit the most in 2023 besides Russia, projecting that the country will post zero growth in 2023 after growing by 3.6% in 2022. 

Boone called for global cooperation to avoid a food crisis. 

“Today, the world is producing enough cereals to feed everyone, but prices are very high and the risk is that this production will not reach those who need it most. Global cooperation is needed to ensure that food reaches consumers at affordable prices, in particular in low-income and emerging market economies,” Boone said.