The global economic growth will be more than 1% lower this year due to the Ukraine crisis, the Organisation for Economic Cooperation and Development (OECD) said in a recently published report, per Reuters.

Key takeaways

"Central banks should remain focused on policy normalisation to keep inflation expectations well-anchored."

"Additional government spending of 0.5% of GDP could reduce the economic impact of conflict by half."

"Crisis could add 2.5% to global inflation."

"Central banks should be prepared to intervene if needed to ensure smooth functioning of financial markets."

Market reaction

Investors stay cautious after this report with US stock index futures falling between 0.55% and 0.8%.