Because of the war in Ukraine, the OECD is assuming growth of only 3 percent. For Germany, the experts dpe forecast growth of 1.9 percent in 2022, and it will be less in 2023.

The industrialized nations organization OECD has revised its forecast for global economic growth downwards significantly due to the war in Ukraine.

The Organization for Economic Cooperation and Development (OECD) in Paris reports that instead of the previous 4.5 percent growth, only 3 percent is now expected for the current year. Growth of 2.8 percent is expected for the coming year instead of the previously forecast 3.2 percent. As a result of the war, inflation will also be higher and last longer than previously assumed, says OECD Secretary General Mathias Cormann.

OECD: Expectations for Germany

For Germany, the OECD predicts economic growth of 1.9 percent for 2022 and 1.7 percent for 2023. The war and oil embargo against Russia hampered the recovery. The increase in inflation is weakening purchasing power, which is dampening the revival in private consumption. The increased uncertainty, the sharp rise in energy prices and new material shortages impacted a number of sectors, as well as private investment and exports. The OECD advises that subsidy programs to cushion rising energy and food prices must be targeted precisely at needy households and companies.