CONFIRMED The world economy has a problem, stagflation is not threatening yet: Europe is facing a difficult period – Topky.sk

The world economy will grow by about 3% this year, similar to last year, the OECD said in its current outlook. It still expected an expansion of 4.5% in December. The OECD also downgraded its forecast for next year to 2.8% from 3.2%. According to the OECD, the world is paying a high price for the Russian invasion of Ukraine, which is a humanitarian catastrophe that has killed thousands of people and forced millions more to flee their homes. The war also caused a sharp rise in the cost of living, which affected people around the world. Before the start of the war in Ukraine, the global economy was heading for a strong, albeit uneven, recovery from the corona crisis. The war and supply chain problems, which are exacerbating China’s anti-pandemic restrictions, strictly adhered to a zero-lead policy, have halted this recovery. Growth will be weaker in almost all economies. Among the countries hardest hit by the war are European countries due to their dependence on energy imports and the influx of refugees. However, commodity prices are having a negative impact on economies around the world, increasing inflationary pressures and reducing real incomes. The OECD expects inflation to peak at 8.5% this year and slow to 6% next year. As late as December, it expected 5% and 3% in 2023. Despite weaker growth and higher inflation, the OECD considers the risk of stagflation in the 1970s caused by the oil shock to be limited. Developed economies in particular are significantly less energy intensive than in the 1970s, as services are the engine of their growth. In addition, central banks have freer hands in fighting inflation. The OECD expects the US economy to grow by only 2.5% this year, by 1.2% in 2023 and not by 3.7% and 2.4% respectively. The euro area economy should expand by 2.6% this year (December forecast: + 4.3%) and by 1.6% (+ 2.5%) next year. China’s economy, hit hard by a new wave of lockdowns, will improve by 4.4% (+ 5.1) in 4.922 and by 4.9% (+ 5.1%) in 2023. Europe may have problems over the next winter. Energy shortages Europe may face energy shortages next winter, warned the head of the International Energy Agency (IEA) Fatih Birol. The Russian invasion of Ukraine has deepened the energy crisis in the region. TASR reports on the basis of a report by Reuters. “I am particularly concerned about the gas markets, if we have a cold and long winter, we may have very difficult days ahead of us,” Birol told the IEA’s annual energy efficiency conference in Sonderborg, Denmark. Sulík strikes back: Matovic’s proposal is absurd, we will veto it! These are the details of embargo negotiations While governments and companies are currently trying to secure alternative energy supplies, it is equally important that governments take measures to dampen demand, Birol thinks. Reducing the temperature of their homes by 2 degrees Celsius will save 20 billion cubic meters of natural gas, equivalent to the volume of Russian gas flowing into Europe via the Nord Stream 1 pipeline.