The crisis in Ukraine could cut more than a percentage point from global growth this year and add 2.5 points to inflation, the Organization for Economic Co-operation and Development (OECD) estimated on Thursday, calling for increases in government spending. in response.
Well-targeted increases in government spending by OECD countries of the order of 0.5% of GDP could reduce the economic impact of the war by about half without significantly increasing inflation, the Organization said.
With Europe heavily dependent on Russian energy imports, the negative impact of the war on the eurozone economy could reach 1.4%, while in the United States it would be around 0.9%, the OECD estimated in an analysis of the economic consequences of the war.
While Russia and Ukraine account for just 2% of global GDP, the two countries have a huge impact on energy and commodity markets, as they are major producers of raw materials used in everything from catalytic converters to cars and fertilizers.
As jumps in energy and commodity prices put further pressure on already high inflation, the OECD said central banks should focus on normalizing monetary policy, although a slower pace is warranted in countries where the economic consequences of war are worse.
Source: CNN Brasil
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