(Bloomberg) — Inflation is still the world economy’s biggest problem, overshadowing concerns of financial stability linked to worries about the banking sector, the acting chief economist of the OECD said.
(Bloomberg) — Inflation is still the world economy’s biggest problem, overshadowing concerns of financial stability linked to worries about the banking sector, the acting chief economist of the OECD said.
“In spite of the turbulence of the last few days, our big problem is still inflation,” Alvaro Santos Pereira told Bloomberg Television’s Tom Keene and Lisa Abramowicz. “Yes, there are risks and there are some episodes of financial volatility that could potentially continue, right now we don’t see systemic risk on the cards.”
Earlier Friday, the OECD revised up its global growth forecast for this year but cautioned that underlying inflation is strong and the recovery remains weak.
“It’s important to say we see a fragile economy going on,” Pereira said. “In the last few days, risks have certainly increased in terms of financial stability and risks overall are more tilted to the downside.”
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