11.8 C
Auckland
Friday, November 22, 2024

Popular Now

Central banks risk plunging developed world into recession – OECD

Central Banks news
Stock photo.

Aggressive anti-inflation policies are hurting economic growth, a report warns.

Central bankers’ continued fight to bring rampant inflation under control could plunge developed countries into recession next year, the Organization for Economic Co-operation and Development (OECD) has warned.

According to its global outlook, issued earlier this week, the tightening of monetary policy since early 2022 is slowing domestic demand growth, while interest rates continue to rise in many economies.

Although the OECD forecasts a “soft landing” for the global economy, it warned that the risks to that view are “pretty high” due to actions by policymakers. “It is unclear how much of the past tightening has fed through and how much is yet to come,” said Clare Lombardelli, the OECD’s chief economist.

The OECD’s 38 member states are forecast to grow by 1.7% in 2023 and 1.4% in 2024, according to the outlook. The global economy is projected to expand by 2.9% in 2023 and 3% in 2024, boosted by growth in non-members India and China.

The report said Germany would be the worst-performing developed economy this year, contracting by 0.1% before recovering to post 0.6% growth in 2024. Overall, the 20-nation Eurozone is expected to expand by 0.6% this year, against 2.4% in the US.

The OECD also raised concerns that the Israel-Hamas conflict could spill over into a wider regional conflict. “This could result in significant disruptions to energy markets and major trade routes, and additional risk repricing in financial markets, that would slow growth and add to inflation.”

Image credit: Burak the Weekender

Promoted Content

Source:RT News

No login required to comment. Name, email and web site fields are optional. Please keep comments respectful, civil and constructive. Moderation times can vary from a few minutes to a few hours. Comments may also be scanned periodically by Artificial Intelligence to eliminate trolls and spam.

4 COMMENTS

  1. As is plunging the world into a recession isn’t part of the plan, lol.

    Don’t worry, there’ll be another world war along any minute to reset the system once again

  2. Plus, the cash / currency will be replaced with CBDC’s once the collapse happens under the term ‘Great Reset’, where Social Monitoring and Social Credit Scores will be used to cut you off from such a Satanic monetary system…!
    Then, you starve to death due to not being able to access your CBDC Bank Account, or you freeze to death due to not being able to pay your power bill…!

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

Trending

Sport

Daily Life

Opinion

Wellington
overcast clouds
10.1 ° C
11.8 °
8.8 °
70 %
7.2kmh
100 %
Thu
12 °
Fri
14 °
Sat
14 °
Sun
15 °
Mon
17 °