OECD warns: The world is entering a "low growth + high inflation" quagmire, and the economic outlook is deteriorating rapidly.

Secretary-General of the Organization for Economic Co-operation and Development (OECD) Matthias Cormann said during the G7 meeting that with the ongoing conflicts in the Middle East, the risks facing global economic growth prospects have further deteriorated. Cormann said in an interview with the media on Tuesday, "The overall assessment is that it is putting downward pressure on economic growth and upward pressure on inflation," "We provided a preliminary assessment in our mid-term economic evaluation in March, but we will make formal revisions to that assessment in the coming weeks. However, it is obvious that growth is facing downward pressure and inflation is facing upward pressure." The Paris-based OECD became the first major international organization to issue a warning in March, stating that the war in Iran would push up prices and suppress economic activity. The organization is scheduled to update its forecasts on June 3. On Monday, finance officials gathered in the French capital for a two-day meeting to discuss long-standing imbalances in the global economy, including the fiscal deficit in the United States. However, the bond market's sharp drop injected a sense of urgency into the meeting, forcing central bank governors worldwide to address increasingly challenging policy challenges arising from the impact of rising oil prices. Cormann stated that for central banks around the world, the challenge in weighing potential rate hikes will be how to address the situation of high inflation risks and weak economic activity simultaneously. "In normal circumstances, you can withstand the impact of energy prices, but of course, if it starts to more broadly contaminate overall prices, if you see wage growth leading to secondary effects, then even if economic growth prospects weaken, central banks need to take action," Cormann added.