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The Organisation for Economic Cooperation and Development (OECD) on Monday said that the global economy is going to take a bigger hit than previously forecast next year
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Citing the Chinese slowdown due to strict Covid-19 lockdown restrictions, the World Bank on Tuesday slashed the economic outlook for East Asia and the Pacific in 2022.
The East Asia and Pacific region, which includes China, is likely to slow down to 3.2 per cent from its 5.0 per cent forecast in April, the World Bank said.
The international body, however, said that the pace of expansion will pick up next year.
The bank said that the Chinese slowdown has disrupted industrial production, domestic sales and exports. China constitutes 86 per cent of the 23-country region's economic output and was estimated to grow 2.8 per cent this year from the previous forecast of 5.0 per cent.
For 2023, the Chinese economy was seen growing at 4.5 per cent.
Meanwhile, amid the ongoing war in Ukraine, the Organisation for Economic Cooperation and Development (OECD) on Monday said that the global economy is going to take a bigger hit than previously forecast next year.
The Paris-based intergovernmental organisation in a bleak report named "paying the price of war", stated that the Ukrainian conflict triggered inflationary pressure when the cost of living was already increasing rapidly.
It said the global economy is still dealing with the impact of the deadly Covid-19 pandemic and growth has also been hit by high-interest rates as central banks struggle to tame inflation.