Elevated power costs are taking a heavy toll on the world economic system, which can worsen if EU gasoline storage amenities run quick, the Group for Financial Cooperation and Growth (OECD) warned on Tuesday.

In keeping with its report, the worst power disaster because the Nineteen Seventies will set off a pointy slowdown worldwide, with Europe hit the toughest.

The OECD forecasts that international financial development will gradual from 3.1% this 12 months to 2.2% in 2023, earlier than accelerating to 2.7% in 2024.

“We aren’t predicting a recession, however we’re actually projecting a interval of pronounced weak point,” OECD chief Mathias Cormann was quoted as saying by Reuters.

The 19-country Eurozone economic system was projected to develop 3.3% this 12 months then gradual to 0.5% in 2023, earlier than recovering to develop by 1.4% in 2024. That’s barely higher than within the OECD’s September outlook, when it estimated development of three.1% this 12 months and 0.3% in 2023.

The OECD predicts a contraction of 0.3% subsequent 12 months in euro space powerhouse Germany, whose industry-driven economic system is very depending on power imports from Russia.

The French economic system, which is much much less depending on Russian gasoline and oil, is anticipated to develop 0.6% subsequent 12 months. Italy’s development is projected at 0.2%, which suggests a number of quarterly contractions are possible.

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