The Organization for Economic Cooperation and Development (OECD) has cut its growth forecast for the U.S. economy, blaming high inflation that could take longer to dissipate as supply disruptions persist in part due to the Ukraine war and China’s COVID-19 lockdowns.
U.S. gross domestic product (GDP) is expected to weaken to 2.46 percent in 2022, down from a prior estimate of 3.73 percent, the international agency said in its most recent Economic Outlook, released on June 8.  The growth forecast for the U.S. economy for 2023 has also been cut to just 1.2 percent.
Inflation in the United States has broadened, seeping into other categories than goods, the OECD noted, while predicting that the PCE inflation rate for 2022 would hit 5.9 percent….