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  • DAILY CURRENT AFFAIRS:Ukraine crisis to reduce World economic growth by 1%-OECD

Ukraine crisis to reduce World economic growth by 1%-OECD

Tags: Russia-Ukraine Economy/Finance

The Organisation of Economic Cooperation and Development (OECD) has warned that the Russian, Ukrainian war could lead to an increase in Inflation and reduction of economic growth in the world in 2022.

  • According to OECD, the crisis is likely to see a reduction of world economic growth by 1% and an increase of 2.5% in inflation in 2022.

  • Ukraine and Russia's contribution to the world economy is around 2% but Russia and Ukraine is a major supplier of energy and other commodities which are used as a major raw material in the world . Russia is a major player in the oil and gas sector, and with Ukraine it is a major supplier of wheat, maize, fertilizers, etc in the world.

  • Europe, which is heavily dependent on Russian oil and gas imports, is likely to see a  decline by 1.4% especially in the eurozone areas and the United States economic growth may decline by 0.9% .

For OECD kindly see March 11, 2022 Post 

Euro Zone 

It is officially called the euro area. It consists of those European Union countries which have accepted the euro as a common monetary unit (currency).

  • The European Union consists of 27 countries of Europe. Out of 27 member countries 19 countries have accepted the euro as a common currency. 

  • These countries are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain.

  • Euro was launched on 1 January 1999. It was used as an accounting unit and for electronic payment for three years.

  • Coins and banknotes were launched on 1 January 2002 in 12 countries and now total countries included in euro areas is 19.

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