Failure to resolve the energy crisis in the Middle East would plunge the world into a “dark scenario” of tumbling growth and sharply higher interest rates, the OECD has warned.
The Paris-based organisation said a “prolonged disruption” to energy flows that lasts into the second half of 2027 would cut global growth to 2.1 per cent this year and just 1.8 per cent next year.
Such rates are “extremely low outside of major global recessions such as the global financial crisis or the pandemic”, the OECD warned, adding that major central banks such as the US Federal Reserve would need to respond by lifting interest rates at least a half-point to curtail inflation risks.
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