A weakening outlook for the world economy

Projections for economic growth in 2022 have been slashed since December 2021, as countries grapple with fresh supply shocks in energy and commodities following Russia’s invasion of Ukraine.

Of the major economies, Germany and Italy have seen the biggest downward revisions in 2022 growth projections, at -2.2% and -2.1%, respectively. In the Euro area and the US, they have been revised by -1.7% and -1.3%, respectively. World GDP growth in 2022, previously expected to reach almost 4.5% in December, is now projected to be just over 3.0%.

This weakening global outlook for the world economy is a price of Russia’s war, and will be paid through lower real incomes and fewer job opportunities.

See also: OECD Economic Outlook, June 2022