Germany Warns of Global Economic Catastrophe Amid Cuts to UK Growth Forecast

European Powers Express Concern Over Economic Impact of Ongoing Conflict

A meeting between German Defence Minister Boris Pistorius and Australian Defence Minister Richard Marles has highlighted growing concerns over the economic strain caused by the ongoing conflict in Iran. On Thursday, Pistorius described the situation as a “catastrophe” for the global economy.

The Organisation for Economic Co-operation and Development (OECD) has also issued a warning, stating that the global economy is veering off its growth path due to planned fiscal tightening and higher energy prices. The OECD reduced its forecast for British economic growth by half a percentage point to 0.7 percent, compared to downgrades of 0.4 percentage points for the eurozone and 0.3 percentage points for the US.

In Australia, Pistorius expressed disappointment that Germany was not consulted before the United States and Israel launched their joint operation on Iran on February 28. He stated that there is no clear exit strategy from the conflict and urged the US and Iran to end hostilities.

The European Commission has called for negotiations with Iran and an end to hostilities, as the bloc urges member states to meet next winter’s gas storage targets. Natural gas prices in the European Union have risen by over 30 percent since the start of the war, spiking after Israel’s attack on Iran’s South Pars gasfield.

Spanish Prime Minister Pedro Sanchez has also called for an end to the conflict, stating that it presents a “far worse” scenario than the invasion of Iraq in 2003. The situation remains fluid, with Iran insisting that the Strait of Hormuz remains open to non-hostile ships.

Source: Al Jazeera