War in Ukraine will slow down the growth of the world economy and drive up inflation - OECD

This is stated on the OECD website.

They note that since Europe is highly dependent on Russian energy imports, the negative impact of the war on the eurozone economy could be up to 1.4%, and in the US - about 0.9%, the OECD calculated in an analysis of the economic consequences of the war.

Although Russia and Ukraine account for only 2% of global GDP, they have a huge impact on the energy and commodity markets as major producers of everything from raw materials from car catalytic converters to fertilizers.

As energy and commodity price hikes put new pressure on already rising inflation, the OECD said central banks should focus on normalizing monetary policy, although a slower pace would be justified in countries where the economic impact of the war is most severe. 

"In the face of soaring energy and food prices, many governments have handed out subsidies to consumers and businesses, and some have also introduced price controls or reduced fees and taxes. Governments should be careful that such measures are temporary and targeted", the organization concluded.