OECD Warns Global Outlook May Worsen in Coming Weeks as Middle East Conflict Fuels Inflation
Updated
Updated · Bloomberg · May 19
OECD Warns Global Outlook May Worsen in Coming Weeks as Middle East Conflict Fuels Inflation
3 articles · Updated · Bloomberg · May 19
Mathias Cormann said the OECD sees the global economic outlook at risk of further deterioration as the Middle East conflict drags on.
The OECD chief said the fighting is pushing growth down and inflation up, worsening the balance policymakers already faced.
Cormann said the organization gave an initial assessment in its March interim outlook and will formally revise that view in the next few weeks.
He spoke on the sidelines of a Group of Seven meeting, signaling the conflict's economic fallout is becoming a central issue for major economies.
Beyond the economic shockwaves, how is the Middle East conflict reshaping the global balance of power?
As a historic oil crisis grips the world, are central banks equipped to prevent a full-blown global recession?
With the Strait of Hormuz closed, what is the long-term strategy to secure global trade and energy supplies?
OECD Warns of Prolonged Global Downturn: Energy, Food, and Supply Chain Risks from Middle East Conflict
Overview
The OECD has issued a stark warning about the immediate economic fallout from the ongoing Middle East conflict, highlighting that global growth prospects have been significantly downgraded. Economic shocks are already spreading across regions, with the Euro area facing a notable slowdown and its GDP growth forecast sharply reduced for the coming years. These challenges are driven by persistent and elevated energy prices, which are fueling inflation and straining both households and governments. The report underscores that the repercussions of the conflict are expected to last for months or even years, creating a difficult environment for policymakers and increasing the risk of prolonged instability.