OECD Cuts Global Growth Forecast to 2.8 Percent Amid Energy Shock

OECD released its Global Economic Outlook report stating global GDP growth will slow to 2.8 percent this year, down from a prior 3.2 percent projection, due to an energy shock and rising inflationary pressures across major economies.

Energy Prices have surged after supply disruptions in key exporting regions such as the Middle East and Russia, lifting crude oil above $100 per barrel and driving electricity costs higher for emerging markets, which in turn curtails consumer spending and investment.

Inflation remains above target in many advanced economies, with core rates near 4 percent in the United States and the eurozone, prompting the Federal Reserve and European Central Bank to keep policy rates elevated and limiting fiscal stimulus options.

Policy Makers are urged to coordinate energy subsidies, tax relief and monetary tightening to stave off a broader slowdown, while the OECD warns that without swift action global growth could fall below 2.5 percent, echoing IMF concerns about war‑driven recession risks.