Consequences of the Ukraine war: global economy grows more slowly

Status: 03/17/2023 2:01 p.m

According to a new forecast by the OECD, the global economy will only grow by 2.6 percent this year. Germany will develop even more slowly this year than other industrialized countries.

According to a forecast by the Organization for Economic Co-operation and Development (OECD), the global economy is growing more slowly. After 3.2 percent last year, economic output is only expected to grow by 2.6 percent this year and by 2.9 percent in the coming year. The OECD announced on Friday in Paris that this is below the long-term growth trend.

But consumer and business sentiment is slowly improving, inflationary pressures are easing and China is reopening.

German economy is growing more slowly than other industrialized countries

For Germany, the OECD expects the inflation rate to fall from 8.7 to 6.7 percent in 2023. In 2024, the value should then only be 3.1 percent. According to the OECD, Germany can hope for slight growth of 0.3 percent in terms of gross domestic product.

For comparison: the euro zone as a whole is expected to grow by 0.8 percent, the USA by 1.5 percent and Japan by 1.4 percent. According to the forecast, the German economy will grow more slowly than other industrialized countries. Germany’s economic output is then expected to grow by 1.7 percent next year. Last year, this value was still 1.9 percent.

According to the OECD, the uncertainty about the course of the Russian war of aggression against Ukraine remains the main problem for the global economy.

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