OECD predicts how 'energy shock' will affect Eurozone

RT.com
24 Nov 2022, 23:44 GMT+10

Group warns of a "period of pronounced weakness" in the single-currency area

Increased energy prices are taking a heavy toll on the world economy, particularly in the Eurozone, the Organization for Economic Cooperation and Development (OECD) warned on Tuesday.

According to its report, the worst energy crisis since the 1970s will trigger a sharp slowdown worldwide, with the euro area hit the hardest.

The OECD forecasts that global economic growth will slow from 3.1% this year to 2.2% in 2023, before accelerating to 2.7% in 2024.

"We are not predicting a recession, but we are certainly projecting a period of pronounced weakness," OECD chief Mathias Cormann was quoted as saying by Reuters.

The 19-country Eurozone economy was projected to grow 3.3% this year then slow to 0.5% in 2023, before recovering to expand by 1.4% in 2024. That is slightly better than in the OECD's September outlook, when it estimated growth of 3.1% this year and 0.3% in 2023.

The OECD predicts a contraction of 0.3% next year in euro area powerhouse Germany, whose industry-driven economy is highly dependent on energy imports from Russia.

The French economy, which is far less dependent on Russian gas and oil, is expected to grow 0.6% next year. Italy's growth is projected at 0.2%, which means several quarterly contractions are probable.

For more stories on economy & finance visit RT's business section

(RT.com)

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to India Gazette.

More Information

null in null

Business

Section

Engine defect prompts Nissan to recall over 443,000 vehicles

FRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential...

Microsoft trims jobs to manage soaring AI infrastructure costs

REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation...

Stocks worldwide struggle to make ground Friday with Wall Street closed

LONDON UK - U.S. stock markets were closed on Friday for Independence Day. Global Forex Markets Wrap Up Friday with Greeback Comeback...

Nvidia briefly tops Apple’s record in AI-fueled stock rally

SANTA CLARA, California: Nvidia came within a whisker of making financial history on July 3, briefly surpassing Apple's all-time market...

ICE raids leave crops rotting in California, farmers fear collapse

SACRAMENTO, California: California's multibillion-dollar farms are facing a growing crisis—not from drought or pests, but from a sudden...

Trump signals progress on India Trade, criticizes Japan stance

WASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would...

Delhi

Section