A woman and a young girl pass through a checkpoint at a German airport. They are refugees from Ukraine.

OECD lowers global growth forecasts, urges Australia to continue to switch to renewable energy as war in Ukraine continues

Australia has been encouraged to continue to switch to renewable energy as the war in Ukraine exposes risks to global energy security.

The Organization for Economic Co-operation and Development (OECD) said the world is paying a “high price” for the war in Russia.

It said the war is a humanitarian disaster, killing thousands, displacing millions from their homes and triggering a cost of living crisis affecting people around the world.

It said the conflict had also exposed how energy security and climate mitigation were intertwined, and it urged governments to “shift up a gear” to accelerate the global transition to renewable energy.

It encourages Australia to make further investments in its transmission networks to support the transition to renewable energy.

OECD says inflation will be higher and more persistent, with slower growth

The OECD has its latest economic outlook on Wednesday.

It lowered its forecast for global growth this year and doubled its inflation forecast as the world’s economies have been hit by more shocks in recent months as the war in Ukraine continues.

It estimated that world growth would now be 3 percent by 2022 – down from the 4.5 percent forecast in December.

It projected inflation in OECD countries to reach an average of nearly 9 percent this year, which is double what it had previously expected.

Pandemic-related effects are responsible for a significant portion of the recent rise in headline inflation around the worldSource: OECD Economic Outlook, Source: Volume 2022 Issue 1 preliminary version, page 33

It said inflationary pressures worldwide were likely to be stronger and longer-lasting than expected, making the world’s economic recovery more complicated and fraught.

“There have been several significant changes in the global economic environment in recent months, including the global spread of the Omicron variant of the SARS-COV2 virus and greater-than-expected continued inflationary pressures, prompting a more rapid adjustment of monetary policy in a number of major economies than previously expected,” the report warns.

“The biggest change, however, is the economic impact of the war in Ukraine.

“The war in Ukraine has dashed hopes that the inflation wave experienced across much of the global economy in 2021 and early 2022 would wane rapidly.

#OECD #lowers #global #growth #forecasts #urges #Australia #continue #switch #renewable #energy #war #Ukraine #continues

Leave a Comment

Your email address will not be published.