OECD - INTERNATIONAL RELATIONS
News: Europe to be hit hardest in global slowdown, says OECD
What's in the news?
● The global economy should avoid a recession next year but the worst energy crisis since the 1970s will trigger a sharp slowdown, with Europe hit hardest, the OECD said, adding that fighting inflation should be policymaker's top priority.
Key takeaways:
● National
outlooks vary widely, although Britain's economy is set to lag major peers, the
Organisation for Economic Cooperation and Development said it.
● It
forecast that world economic growth would slow from 3.1% this year, slightly
more than the OECD foresaw in its September projections to 2.2% next year,
before accelerating to 2.7% in 2024.
● The OECD said the global slowdown was hitting economies unevenly, with Europe bearing the brunt as Russia's war in Ukraine hits business activity and drives an energy price spike.
OECD:
● The
Organisation for Economic Cooperation and Development (OECD) is an intergovernmental economic organization
to promote economic development and global trade.
● Established
in 1961.
● Headquarters - Paris.
Members:
● Consists
of 38 countries.
● The
majority of OECD members have developed countries with high-income economies and a high Human Development Index (HDI).
● Members
of the OECD are democratic countries that support free markets.
● India is not a member of
OECD.
● It
gives its member countries a place to share policy experiences, look for
solutions to common challenges, discover and share best practices, and
coordinate domestic and international policies.
● The Organization for Economic Cooperation and Development (OECD) is a think-tank or monitoring group that is an official Permanent Observer to the United Nations.
Functions:
● The
Organization for Economic Cooperation and Development (OECD) is a key player in
maintaining global economic stability.
● The
Organization for Economic Cooperation and Development (OECD) publishes and
updates a model tax convention that serves as a blueprint for assigning
taxation rights between countries.
● Efforts
were also made to eliminate tax evasion
by profitable firms and in G-20 countries. It also encourages G-20 members to
push for tax reform.