‘Sharp recession’ warning as conflict drives oil prices
By Cameron Micallef and Joseph Olbrycht-Palmer
Australia’s economy could suffer a “sharp recession” and global cost of living could spike to near post Covid highs should the conflict in the Middle East continue.
In a grim warning, Oxford Economics says the global economy could feel the impacts of soaring oil prices and a prolonged downturn should the conflict extend for another two months.
The forecast also relies on the key passageway of the Strait of Hormuz being closed until the end of April before about 50 per cent of ships pass through in May and June.
Oxford Economics report author Harry McAuley warns that Australia will not be immune to the global downturn.