The Organization for Economic Cooperation and Development revealed more optimistic forecasts for the global economy. The organization expects global growth to reach 2.9%, compared to its previous forecast last November of 2.7%.
The organization warned that “escalating geopolitical tensions pose a significant risk to activity and inflation in the near term” The recent increase in shipping costs has increased by almost 100%, and if it continues could have lasting effects on consumer price inflation. If shipping costs continue, inflation in import prices could rise by about 5 percentage points.