OECD warns of global stagflation

clock

The global economy faces the risk of stagflation as rising commodity prices and slowing growth in China derail the recovery, said the Organisation for Economic Co-operation and Development (OECD).

According to the OECD, global growth is predicted to be 4.2% this year - down from last year's figure of 4.9% - before rising to 4.6% in 2012, reports the BBC. In its latest economic outlook, the Paris-based think-tank warned of the dangers posed by rising oil and other commodity prices, the European debt crisis and a sharp slowdown in China. Such pressures, combined with the ongoing fallout from the Japanese earthquake, could lead to a situation of stagflation in some countries - the phenomenon of stagnant growth and high inflation. It said one major risk is political instability ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why the lead-up to the Budget may have been worse than the Budget itself

Why the lead-up to the Budget may have been worse than the Budget itself

What Rachel Reeves and Dr Evil have in common

Laith Khalaf
clock 13 November 2024 • 4 min read
Bank of England meets expectations with 25 basis point rate cut to 4.75%

Bank of England meets expectations with 25 basis point rate cut to 4.75%

'Continued progress' on disinflation

Valeria Martinez
clock 07 November 2024 • 2 min read
'Budget will be a reset for our economy' Reeves tells IMF colleagues

'Budget will be a reset for our economy' Reeves tells IMF colleagues

Autumn Budget on 30 October

Linus Uhlig
clock 24 October 2024 • 2 min read