New Delhi

The Organisation for Economic Co-operation and Development (OECD) said on Monday that the world economy will be suffering more than what was previously predicted due to the ongoing Russian invasion of Ukraine. The Paris-based organisation reduced the 2023 growth forecast for the global economy to 2.2 percent. Earlier in June, it was estimated to be around 2.8 per cent.

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"A number of indicators have taken a turn for the worse, and the global growth outlook has darkened," OCED wrote in their report titled "Paying the price of war".

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The report also said that the COVID-19 pandemic is still affecting global economy in a negative way with banks around the world increasing interest rates to control inflation.

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Global growth stalled in the second quarter of this year and data in many economies "now point to an extended period of subdued growth", the OECD said according to AFP.

The forecasts for all economies around the world looked quite grim in the report with Britain not expected to make any growth. United States have a growth of just 0.5 per cent next year.

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According to the forecasts, Germany is expected to be the worst-affected country in Europe with chances of recession due to the ongoing energy crisis. The decision taken by Russia to stop gas supply can result in the German economy shrinking by around 0.7 per cent in 2023.

"The effects of the war and the continuing impacts of Covid-19 outbreaks in some parts of the world have dented growth and put additional upward pressure on prices," the OECD said.