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Mindanao land transport, security sectors beef up coordination  

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LAND TRANSPORT and security sector representatives in Mindanao will forge stronger coordination to prevent safety threats to commuters, starting with ensuring compliance to the required security plan for all service operators.  

The policies are in place, we just need to reinforce implementation,Transport Undersecretary Raul L. Del Rosario, head of the Office for Transportation Security (OTS), said during the 1st Mindanao Land Transport Security Summit held on Thursday.   

The Department of Interior and Local Government (DILG) issued a memorandum circular in September last year requiring all bus operators and transport terminals, whether public or private, to have a security plan approved by the OTS.   

In Mindanao, the southern Philippine mainland, only 12 of 40 bus operators and five out of 135 terminal operators so far have approved security plans, based on OTS data.  

Winston Antero P. Barquez, head of the OTS Risk Assessment Division, said the absence of effective security screening prior to entry into the bus or terminalwas the main security gapidentified in the four bombing incidents in Mindanao this year.   

These bombings highlighted the need to fully operationalize and effectively enforce existing policies that govern security measures,said Assistant Secretary Romeo M. Montenegro, deputy executive director of the Mindanao Development Authority (MinDA), which organized the summit and will be helping coordinate action plans.  

The meeting participants which included representatives from national and local governments, police, military, transport operators, and the private sector — committed to form local-level groups to firm up security plans and integrate these initiatives into a Mindanao-wide strategy.   

Davao Citys transport security framework will be tapped as one of the blueprints for the local programs. It includes multi-sector participation in security enforcement and supported by ordinances that provide legal basis for implementation.  

In February this year, bus services between Davao and Marawi passing through two other urban centers, the cities of Cagayan de Oro and Iligan and several other new routes intended to boost economic and cultural activities within Mindanao were launched.  

Among these main bus lines is between the cities of General Santos and Dipolog via Cotabato.  

Other shorter routes such as between Pagadian City in Zamboanga del Sur and Marawi, and Iligan-Marawi will be served by jeepneys. 

Its time for Mindanao to have all these,MinDA Chair Maria Belen S. Acosta said at the launching ceremony held in Marawi City.  

Bangsamoro Minister of Transportation and Communication Dickson P. Hermoso, for his part, said the opening of these new services will be followed by other initiatives to improve people and cargo movement.  

On June 8, MinDA and the Bangsamoro Autonomous Region in Muslim Mindanaos Ministry and Transportation and Communication signed an agreement to set up mechanisms that will enhance collaboration on project development and investment promotion. MSJ

Want a farm tour? Calabarzon has more than 20 places to choose from

GOING on a farm tour does not need to be a trip too far from Metro Manila as there are more than 20 sites to choose from within the five provinces of neighboring region Calabarzon.  

The Department of Tourism recently launched its culinary circuits caravan in the region showcasing accredited destinations that offer farm-to-table dining alongside a taste of agricultural life.    

Tourism Regional Director Marites T. Castro, in a statement on Wednesday, said there are 26 accredited farm tourism sites in Calabarzon, composed of the provinces of Cavite, Laguna, Batangas, Rizal and Quezon.  

Many of these are also recognized by the Department of Agricultures Agricultural Training Institute as community farm schools,she said.  

Some of the places offer accommodations and other recreational activities.  

Farms are safe alternatives to the crowded tourist spots because of their vast open spaces, fresh air, physical distancing, and freshly-cooked dishes,she said.  

Among the places in the list are: 

Cavite Terra Verde Ecofarm, Bounty Harvest Farm, EMV Flower Farm Indang, Luntiang Republika Ecofarms, and The Weekend Farmer; 

Laguna Graco Farms & Leisure, Silent Integrated Farm, Farmshare Prime, Jasif Integrated Farms, and Casa San Pablo;  

Batangas Don Leon Nature Farm, Mileah Bee Farm, and Lica Farms in Lipa City; 

Rizal Flors Garden and Nature Haven, FDRJ Camping Sites Rental, and Pili Paninap Farms; and   

QuezonFrancesca de Banahaw, Bukid Amara, and Linang ni LK Restaurant. MSJ 

France confers agriculture award to Romulo-Puyat 

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OUTGOING Tourism Secretary Bernadette Romulo-Puyats more than two-decade career in government service was spent longest in the agriculture sector.  

As undersecretary of the Department of Agriculture from 2007 to April 2018, her job brought her to farm and fishing communities across the country.  

Seeing firsthand the issues and concerns that our farmers and fisherfolk encountered on a daily basis, from getting their produce or seafood to the market, gaining ready access to credit, or needing to increase yields or efficiency, my colleagues and I went to such great lengths to bring greater attention to the countrys agricultural products,Ms. Romulo-Puyat said in her speech when she recently received the Order of Agricultural Merit conferred by the French government.   

As tourism chief since May 2018, she continued to champion the agricultural sector by including farm tourism and local cuisine among the highlights in marketing campaigns for both domestic and international travelers.   

French Ambassador Michèle Boccoz said the award is in recognition of her steadfast commitment to supporting the agricultural sector and promoting food culture in the Philippines.  

On behalf of the French government, it is my honor to confer this prestigious award to Bernadette Romulo-Puyat who has shown great commitment, perseverance, and openness to collaborate throughout her career in service of the Filipino people and of the agricultural sector in the Philippines, Mr. Boccoz said during the awarding ceremony held at the French Residence in Makati City on Tuesday. 

The ambassador cited Ms. Romulo-Puyat’s contribution to the development of agricultural products, while supporting gender-inclusive agriculture, expanding links between stakeholders, and encouraging the adoption of modern techniques in the sector. 

I share this award with the people of the Philippines, most especially our farmers and fisherfolk, without whom we would not be standing here today,she said.  

In 2017, a bilateral cooperation agreement was signed to consolidate institutional relations between Frances Ministry of Agriculture and Food and the PhilippinesDepartment of Agriculture. This has strengthened the agricultural and technical cooperation in sectors and areas of common interest.   

In the same year, the DA and the French Embassy in Manila jointly organized Philippine Harvest Meets Bon Appetit,a food fair showcasing organic and unique Filipino and French cuisines.  

Ms. Romulo-Puyat, who holds a Masters degree in Economics, is headed next to the Bangko Sentral ng Pilipinas as a deputy governor. Alyssa Nicole O. Tan 

More gov’t action needed vs text scams — Poe 

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THE DEPARTMENT of Information and Communications Technology and the National Telecommunications Commission (NTC) should step up efforts against the rampant text scams in the country, a senator said on Thursday.  

“The unabated surge of text scams has brought further hardship and distress on our people who are already mired in debts,Senator Mary Grace S. Poe-Llamanzares, who chairs the Senate Public Services Committee, said in a statement.   

This must stop.”  

She said that despite the NTCs directive for major telecommunication companies to send warnings against fake job offers sent via SMS or short message service, these have continued to proliferate and deceive mobile phone users.  

“We must not allow the fraudsters and syndicates behind these text messages to continue to feast on our countrymen who are still plagued by the pandemic, and rising oil and commodity prices,” the senator said.  

Ms. Poe called on the members of the incoming 19th Congress to prioritize the deliberation and passage of the SIM Card Registration bill to institutionalize protection for millions of mobile users in the country.  

As of end-March, Globe Telecom, Inc. had 87.4 million subscribers, while Smart Broadband, Inc. with 70.3 million. DITO Telecommunity Corp. had five million subscribers by the end of 2021.  

The proposed measure mandating the registration of SIM cards was passed by the 18th Congress, but President Rodrigo R. Duterte vetoed it, saying the matter needs more thorough study.   

He did not agree with the measures provision that will require social media networks to secure the real names and phone numbers of account users. Various sectors also opposed this provision, citing threats to privacy and free speech.   

The bill was intended to help fight telecommunication fraud as well as terrorism and other criminal activities.  

“The whole of government must ensconce a safer and more secure digital and mobile phone use in the country to protect our people from falling deeper into poverty and helplessness,said Ms. Poe.  

“To most, the mobile phone is their only means to survive, and it shouldn’t at all be compromised,” she added. Alyssa Nicole O. Tan 

TRB inspects CAVITEX C5 link flyover extension

CAVITEX.PH

THE TOLL Regulatory Board (TRB) has inspected the 1.6-kilometer Cavitex C5 Link Flyover extension as it nears completion, according to Cavitex Infrastructure Corp. (CIC)    

In a statement on Thursday, CIC said the government regulators had a site visit early this week, where traffic management plans were also discussed.  

This entails transferring of the Merville entry and exit ramp to in front of Shell C5 Southlink for better traffic flow. Traffic signalization and signages will be installed in coordination with the local authorities to help manage traffic for motorists bound to the expressway, and those that will use the service road,the company said.    

The flyover extension will link to the operational 2.2-km Cavitex C5 Link flyover, providing convenient access for motorists heading to South Luzon Expressway (SLEX)/C5 from Merville and vice-versa.   

The flyover extension dubbed, Segment 3A2: Merville to E. Rodriguez Avenue, is already 95% complete, according to the CIC.    

We are pleased to see the progress of the Cavitex C5 Link. We look forward to it serving an estimated 15,000 motorists, helping lessen their travel time from SLEX to Pasay, Taguig and Parañaque, thereby helping decongest some of our local roads,TRB Executive Director Alvin A. Carullo said.    

Meanwhile, CIC said the construction of Segment 2, called Cavitex R1 Expressway to Sucat Interchange, has reached over 30% completion.    

The travel time of motorists between the two areas will be cut by as much as thirty minutes, bypassing traffic from Sucat Road and Quirino Avenue, once the segment links Cavitex to its Sucat Interchange.    

CIC is controlled by Metro Pacific Tollways Corp., a unit of Metro Pacific Investments Corp. (MPIC).   

MPIC is one of three Philippine units of Hong Kongs First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. Revin Mikhael D. Ochave 

Boston Celtics pull away from Warriors for 2-1 edge in Finals

BOSTON CELTICS forward Jayson Tatum (0) attempts a layup against Golden State Warriors forward Andrew Wiggins (22) in the first half during Game 3 of the 2022 NBA Finals at TD Garden. — REUTERS

JAYLEN Brown scored 17 of his 27 points in the first quarter and Jayson Tatum finished with 26 points to lift the host Celtics to a 116-100 victory over the Golden State Warriors on Wednesday in Game 3 of the National Basketball Association (NBA) Finals.

The Celtics grabbed a 2-1 lead in the best-of-seven series with Game 4 set for Friday in Boston.

“My message to the team was, ‘We’ve done this after losses. It’s time to do it after wins,’” Celtics coach Ime Udoka said after his team improved to 7-0 after a loss in the playoffs.

Tatum had nine assists and Brown added five to go along with nine rebounds. Boston’s Marcus Smart finished with 24 points on Wednesday after mustering just two in the Celtics’ 107-88 loss in Game 2 on Sunday.

“That left a bad taste in our mouth, coming out of Game 2 hearing and knowing that we got beat up,” Smart said on the NBA TV. “For us, it’s like anybody else. If you’re in a fight with a bully, you gotta keep going and you gotta stand up.

“…We got the Golden State Warriors who have done this before multiple times who understand what it takes to be here. They want to see what you got. They punched us in our mouths in Game 2, and we responded.”

Al Horford collected 11 points, eight rebounds and six assists for Boston, which held a 47-31 advantage in total rebounds — including 15-6 on the offensive glass.

Golden State star Stephen Curry overcame early foul trouble to make six 3-pointers and finish with 31 points. Curry remained in the game with 4:07 to play in the fourth quarter despite appearing to injure his left leg while vying for a loose ball.

Warriors coach Steve Kerr said Curry was removed from the game given his team’s 14-point deficit with 2:19 to play.

“We weren’t going to catch up,” Kerr said. “We’ll know more (on his status) tomorrow.”

Klay Thompson had 25 points and Andrew Wiggins added 18 for the Warriors, who benefited from their third straight strong third quarter in the series to trim their deficit to four points entering the fourth.

Draymond Green, who was roundly jeered by the crowd, finished with just two points and four rebounds.

Green used an expletive to describe his own performance before adding, “I was soft. That’s what was most disappointing to me, for us.”

Tatum made two foul shots, a long jumper and two driving layups to start the fourth quarter and stake Boston to a 107-96 lead with 5:53 to play. Smart sank a corner 3-pointer and made a bank shot to give the Celtics a 114-100 lead with 2:19 remaining.

Golden State, which outscored Boston by a combined 73-38 margin in the third quarters of Games 1 and 2, hoped for similar domination on Wednesday after entering the period with a 12-point deficit. Curry drained back-to-back 3-pointers and made two more to give the Warriors an 83-82 lead before Smart answered from beyond the arc on the next possession.

Brown responded from a sluggish 5-for-17 shooting performance on Sunday with an aggressive start on Wednesday. He made six of nine shots — including three of four from 3-point range — in the first quarter. — Reuters

Broncos have ownership bid in place for record $4.65B

THE Denver Broncos appear set to be sold for a sports-franchise record $4.65 billion, according to multiple media reports.

As expected, the Walton-Penner family — led by Walmart heir Rob Walton — has made the winning bid. The Walton-Penner family and the Pat Bowlen Trust have entered into a purchase and sale agreement, it was jointly announced on Tuesday.

The specific amount of the record-setting transaction was reported on Tuesday by various media outlets.

This would be the highest price paid for an American sports franchise, topping the $3.2 billion paid for the NBA’s Brooklyn Nets in 2019. It would also be more than double the most recent sale price of an NFL team as the Carolina Panthers were sold for $2.275 billion in 2018.

Forbes valued the Broncos at $3.75 billion in 2021, estimating it at No. 10 on the list of National Football League (NFL) franchise valuation.

Earlier this month, Forbes identified other bidders as Josh Harris, who is part of the ownership group of the Philadelphia 76ers and New Jersey Devils; Jose E. Feliciano, one of the founders of Clearlake Capital; and mortgage lender Mat Ishbia.

Walton, 77, has a net worth of $65 billion and is the 19th-richest person in the world, per Forbes. The Walmart fortune is so vast that his siblings, Alice and Jim, also are among the world’s 20 richest people on Forbes’ list of billionaires.

If the Walton sale goes through, Rob Walton would become the second NFL owner from the extended Walton family. Ann Walton Kroenke, who is Walton’s cousin, is married to Stan Kroenke, owner of the Los Angeles Rams.

“We are thrilled to be selected to move forward with the purchase of the Denver Broncos!” Rob Walton said on behalf of the ownership group. “Carrie (Walton-Penner), Greg (Penner) and I are inspired by the opportunity to steward this great organization in a vibrant community full of opportunity and passionate fans.”Reuters

Red Bull Dance Your Style is now in the Philippines

FOR the first time ever, Red Bull Dance Your Style, the brand’s take on a global 1-on-1 street dance competition with a unique battle format featuring the latest hits and timeless classics that challenge a dancer’s freestyle and improvisation skills, is coming to the Philippines.

Unlike other major dance competitions with professional judges, the crowd will play a crucial role in determining the winner of each battle. The crowd participation means the dancers will really need to express their personality and passion through their dancing. They’ll need to win the crowd to move past their opponents.

The first major Red Bull Dance Your Style Philippines event will kick off at the BGC Amphitheatre with the National Finals on July 23, featuring the top 16 dancers who qualified and pre-selected by nationally-established dance consultant and a member of the Philippine All-Stars Vince Mendoza. “The selection process was not easy and hard as well. Can you imagine gathering talented people and sizing up their skill-set? It’s like a dream and also having that excitement during the selection process,” shares Mendoza when asked about the decision making that went into choosing the country’s representatives.

All the participants will be gathering together in one place for an intense yet fun dance battle to test the diversity of their move-set while proving that they are the best dancer in the world.

Each round of every battle will consist of two thrilling rounds with the DJ spinning mixes of different genres ranging from modern pop and rap music to old-school classics. The competitors will need to prove that they have rhythm, movement, creativity, and charisma since capturing the crowd’s attention and acquiring their approval is the only way to secure a spot in the next round of the competition.

The winner of the National Finals will then move on to the World Finals and represent the Philippines, competing against over 60 dancers from 30 countries. The World Finals is set to take place in Johannesburg, South Africa, in December 2022.

Interested viewers may secure their spot to watch Red Bull Dance Your Style live via this link: www.redbull.com/danceyourstyleph. Registration officially opens on June 2022.

Dutch ends Wales’ World Cup party with Cardiff win

CARDIFF — A second-string Netherlands beat Wales 2-1 away after a dramatic late finale in the Nations League on Wednesday, bringing the hosts back down to earth after they secured World Cup qualification at the weekend.

Wout Weghorst won the game for the Dutch, scoring with a header four minutes into stoppage time, straight after Wales looked to have snatched a late draw when Rhys Norrington-Davies netted two minutes into stoppage time.

Teun Koopmeiners opened the scoring five minutes into the second half to give the visitors the lead, after coach Louis van Gaal had changed his entire team from the side that opened their League A Group Four campaign with a 4-1 thumping of neighbor Belgium last Friday.

Wales also rested some of its senior squad members after winning a World Cup place for the first time in 64 years when they beat Ukraine 1-0 on Sunday, allowing fringe players to stake a claim for selection in the Qatar-bound team.

Despite looking the brighter of the two sides in the first half, Wales was caught early in the second when Koopmeiners found a pocket of space to fire home from the edge of the area with his weaker right foot after being set up by debutant Jerdy Schouten.

The Dutch had only one chance in the first 45 minutes, on the stroke of half time, when Cody Gakpo’s shot was deflected away for a corner by Chris Mepham.

Before that, Wales’s Harry Wilson hit the target with a free kick but his effort was punched away by Dutch goalkeeper Mark Flekken.

Welsh talisman Gareth Bale made a cameo appearance in the final quarter-hour, but it was Norrington-Davies who rose powerfully at the back post to head home an equalizer.

Yet almost straight from the kickoff, Frenkie de Jong surged forward at the start of a move that ended with Weghorst diving to head home a dramatic winner.

“It was a fantastic counter but we were sloppy in the first half, turned over a lot of possession and so we couldn’t attack. But I keep saying we have a tremendous squad,” Van Gaal told Dutch NOS television after the game.

Wales has now lost both games of the new Nations League campaign after defeat in Poland a week ago and also saw a 19-match unbeaten home record come to an inauspicious end.

Wednesday’s win extended the Netherlands’ 100% record over Wales to nine matches and put it top of the Nations League group.

The Dutch next hosts Poland in Rotterdam on Saturday when Wales hosts Belgium. — Reuters

Celtics edge

EVEN those with just a passing interest in the National Basketball Association Finals would have predicted the Celtics’ renewed aggression yesterday. After practically having been bullied off the court by the Warriors in Game Two, they knew they had to at least match the intensity of the Western Conference champions moving forward. And, in this regard, they understood that they had both the means and the opportunity to live up to potential. It wasn’t simply that they would be moving to familiar TD Garden, where a capacity crowd of 19,156 awaited. More importantly, it was that they had the stronger, more physical, and better-balanced lineup.

Perhaps the outcome was to be expected given the extent to which the Celtics were punked by the Warriors on the strength of former Defensive Player of the Year awardee Draymond Green’s exertions. To a man, they resolved to be more focused even in the face of extra-legal provocations designed to get their goat. And, to their credit, they set the tone from the get-go; bully ball was on display, but upon their instigation. They made their presence felt — in the paint, off the boards, on the ground. The result: an emphatic 16-point victory in which they were ahead for all but 33 seconds of the set-to.

Needless to say, the Celtics now have the decided edge — and not just because history has two-one leaders claiming the Larry O’Brien Trophy four out of five times. To contend that the Warriors need to take Game Four would be to underscore the obvious. The green and white are too big, too strong, and too heady to squander three chances to bring home the hardware. They have the talent and athleticism to counter their seeming lack of experience. Moreover, they’re quick learners, as evidenced by their capability to immediately bounce back from setbacks; through the postseason to date, they have yet to lose twice in a row.

That said, the Celtics know there is no sure thing in the Finals, and especially against the gritty Warriors. The latter’s third-quarter charges are no fluke, and serve to remind them of the singular impact two-time Most Valuable Player awardee Steph Curry can have on proceedings. Which, for all intents, is why they would do well to press their advantage. The last thing they want is for the tide to turn on account of their complacency.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

In shadow of Ukraine war: US and China set to clash at Asian security meeting

US AND CHINESE national flags are at the Great Hall of the People in Beijing, July 10, 2014. — REUTERS/JASON LEE/FILE PHOTO

SINGAPORE — The United States and China are expected to use Asia’s top security meeting this week to trade blows over everything from Taiwan’s sovereignty to the war in Ukraine, although both sides have indicated a willingness to discuss managing differences.

The Shangri-La Dialogue, which attracts top-level military officials, diplomats and weapons makers from around the globe, will take place June 10-12 in Singapore, the first time the event has been held since 2019 after it was postponed twice because of COVID-19.

On the sidelines of the summit, US Defense Secretary Lloyd Austin and Chinese Minister of National Defense General Wei Fenghe are expected to hold their first face-to-face meeting since President Joseph R. Biden took office.

“We expect, from our perspective, the substance of that meeting to be focused on managing competition in regional and global issues,” a senior US official said.

Chinese media have also said Beijing will use the meeting to discuss cooperation with the United States.

Mr. Austin and Mr. Wei are likely to then use speeches over the weekend to re-affirm their commitment to the Asia-Pacific region, while delivering some pointed remarks in the direction of the other.

Relations between China and the United States have been tense in recent months, with the world’s two largest economies clashing over everything from Chinese belligerence towards Taiwan, its military activity in the South China Sea and Beijing’s attempts to expand influence in the Pacific region.

Although the summit is focused on Asian security issues, Russia’s invasion of Ukraine will remain central to discussions. The conflict, which has killed tens of thousands of people, uprooted millions and reduced cities to rubble, entered its 100th day last week.

Ukraine will send a delegation to the meeting but the Russians will not be attending, according to a source familiar with the list of attendees.

“American participants will use the occasion to criticize China’s strategic partnership with Russia,” said Li Mingjiang, associate professor at the S. Rajaratnam School of International Studies in Singapore.

“We’ll see some inferences of the China-Russia partnership as a coalition of autocracies … China will defend their relationship with Russia, their position and policy in response to Ukraine.”

‘COME OUT SWINGING’
With US military and political capital soaked up by the war in Ukraine, Mr. Austin will be under pressure to convince China’s rivals in Asia that they can rely on Washington.

“They say that China is this huge threat and they’re even saying it’s an acute threat. Yet it seems a major part of the attention and resources are basically going to Europe,” said Elbridge Colby, a former senior Pentagon official. “It’s not about words, it’s about walking the walk.”

Bilateral talks between the United States and China, and much of the conference, will likely focus on Taiwan.

China, which claims democratic Taiwan as its own territory, has increased military activity near the island over the past two years, responding to what it calls “collusion” between Taipei and Washington.

“The US is going to come out swinging on Taiwan specifically but also China’s growing assertiveness throughout the Indo-Pacific,” said Derek Grossman, a senior defense analyst at the RAND Corporation, a think tank.

This month, Mr. Biden said the United States would get involved militarily should China attack Taiwan, although the administration has since clarified that US policy on the issue has not changed and Washington does not support Taiwan’s independence.

Washington has had a long-standing policy of strategic ambiguity on whether it would defend Taiwan militarily.

The Pacific islands have also emerged as a key front in Washington’s strategic competition with China.

Mr. Biden’s special envoy is due to visit the Marshall Islands next week amid growing US worries about China’s efforts to expand its influence in the region. Last week, a virtual meeting of 10 Pacific foreign ministers hosted by Chinese Foreign Minister Wang Yi in Fiji agreed to defer consideration of a Chinese proposal for a sweeping trade and security pact.

Also looming over the Shangri-La Dialogue is the increasing military threat posed by North Korea, which has carried out at least 18 rounds of weapons tests this year, underscoring its evolving nuclear and missile arsenals.

Officials from South Korea, the United States and Japan said on Wednesday that North Korea’s recent missile tests were “serious, unlawful” provocations.

Japanese Prime Minister Fumio Kishida will open the conference on Friday with a keynote speech in which he is expected to call for peaceful resolutions to disputes in the Asia-Pacific region. — Reuters

OECD slashes growth outlook to 3%, but sees limited stagflation risk

REUTERS

PARIS — The war in Ukraine has made the growth outlook far bleaker even though the global economy should avoid a bout of 1970s-style stagflation, the OECD said on Wednesday, slashing its growth forecasts and jacking up its inflation estimates.

The world economy is set to grow 3% this year, much less than the 4.5% expected when the Organization for Economic Cooperation and Development (OECD) last updated its forecasts in December.

Growth will then slow further next year, easing to 2.8%, down from a previous forecast of 3.2%, the Paris-based policy forum said in its latest Economic Outlook.

“Russia’s war is indeed posing a heavy price on the global economy,” OECD Secretary General Mathias Cormann told a news conference.

“Global growth will be substantially lower with higher and more persistent inflation,” he said, adding the OECD was not forecasting recession although there were numerous downside risks to the outlook.

Meanwhile, any quick relief from soaring costs is unlikely, with inflation expected to peak at 8.5% this year in OECD countries before slipping to 6.0% in 2023. Previously the OECD had expected inflation to peak at 5% before gradually receding to 3% in 2023.

Despite the lower growth and higher inflation outlook, the OECD saw a limited risk of “stagflation” like that seen in the mid-1970s, when the oil price shock triggered runaway inflation and surging unemployment.

In particular, developed economies are much more driven by services and less energy-intensive than in the 1970s and central banks have a freer hand to fight inflation, independent of governments more concerned about unemployment.

“To mitigate the cost of inflation, the burden will need to be split between profits and wages, that is about employers and employees negotiating to share this cost in a fair way and avoid a wage price spiral,” OECD chief economist Laurence Boone said.

DOWNGRADED OUTLOOK
The OECD said it saw a strong case for steady removal of monetary policy stimulus in high-inflation economies, such as the United States and eastern Europe.

As the pandemic-related fiscal boost expires, the US economy was seen growing 2.5% this year before slowing to 1.2% in 2023, down from previous forecasts of 3.7% and 2.4% growth, respectively.

China’s economy, which has been hit by a fresh wave of COVID-19 lockdowns, is seen growing 4.4% this year and 4.9% next, down from 5.1% previously expected in both years.

More exposed to Russian energy imports and the fallout from the war in Ukraine, the euro zone economy was seen growing 2.6% this year and 1.6% in 2023, down from forecasts of 4.3% and 2.5% respectively. — Reuters