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OECD Says War In Ukraine To Have Greater Impact On Global Economy Than Expected.

A ship carrying a cargo of 26,000 tons of corn leaves Ukraine’s port of Odessa en route to Lebanon on August 1.

A ship carrying a cargo of 26,000 tons of corn leaves Ukraine’s port of Odessa en route to Lebanon on August 1.

The Organization for Economic Cooperation and Development (OECD) says Russia's war in Ukraine, now in its eighth month, will have a greater impact on the global economy than previously expected.

The OECD said on September 26 that it had slashed its growth forecast for the global economy to 2.2 percent in 2023 from a previous estimate of 2.8 percent.

"The world economy is paying a high price for Russia’s unprovoked, unjustifiable, and illegal war of aggression against Ukraine," the OECD said in a regular report updating its economic outlook.

"With the impacts of the COVID-19 pandemic still lingering, the war is dragging down growth and putting additional upward pressure on prices, above all for food and energy. Global GDP stagnated in the second quarter of 2022 and output declined in the G20 economies," it added.

The report said that high inflation is persisting for longer than expected and that in many economies, inflation in the first half of 2022 was at its highest since the 1980s.

"With recent indicators taking a turn for the worse, the global economic outlook has darkened," the OECD said.

Russia launched its invasion of Ukraine on February 24.

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