OECD cuts world economic growth view, sees 3.0% growth in 2022 (prev. 4.5%) and sees 2.8% growth in 2023 (prev. 3.2%)

GROWTH:

• Sees US growth of 2.5% this year (prev. 3.7%), and 1.2% in 2023 (prev. 2.4%)
• Sees Euro Area growth of 2.6% this year (prev. 4.3%) and 1.6% in 2023 (prev. 2.5%)
• Sees China growth of 4.4% this year (prev. 4.9%) and 5.1% in 2023 (prev. 5.1%)

INFLATION:

• Says inflation will peak in 2022 at 8.5% in OECD as a whole, before paring to 6% in 2023.
• Says removing accommodation is warranted worldwide, but with caution in Europe where supply-driven inflation dominates.
• Says wherever inflation is driven by over-buoyant demand, like in the US, monetary policy can be tightened more quickly.

ENERGY:

• Says negative supply shock from oil prices should have less stagflationary impact than was seen in the mid-1970s

via OECD