.jpg)
1 hour ago
3
Article content
(Bloomberg) — Risks to the global economy have worsened as the conflict in the Middle East drags on, OECD Secretary General Mathias Cormann said on the sidelines of a Group of Seven meeting.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
“The overall assessment is that it’s putting downward pressure on growth and upward pressure on inflation,” Cormann said on Tuesday in an interview with Bloomberg Television. “We provided an initial assessment in our interim economic assessment in March, but we will be revising that assessment in the next few weeks in a formal sense. But clearly downward pressure on growth and upward pressure on inflation.”
Article content
Article content
Article content
The Paris-based OECD was already the first major international institution to warn in March that the Iran war would fuel price increases and dampen economic activity. It is due to update its forecasts on June 3.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Finance officials gathering for a two-day meeting in the French capital on Monday set out to discuss enduring mismatches in the global economy including the US budget deficit and China’s vast trade surplus.
Article content
But a bond market rout injected urgency into the get-together, forcing ministers and central bankers to reckon with growing policy challenges from the shock of rising oil prices.
Article content
Article content
Article content
Cormann said the challenge for central banks will be to deal with the combination of elevated inflation risks and weaker economic activity as they weigh possible interest-rate increases.
Article content
“Normally you would be able to see through an energy price shock but of course if it starts contaminating prices more broadly, if you see increases in wages as secondary effects then central banks will need to take action even if the economy growth outlook is somewhat weaker,” Cormann said.
Article content
—With assistance from Daniel Flatley, Erik Hertzberg, Tomoko Hatakeyama, Richard Bravo, Cécile Daurat, Eloise Hardy, Alessandra Migliaccio, Kamil Kowalcze, Joe Mayes and Toru Fujioka.
Article content
English (US)