OECD forecasts faster recovery of world economy / Article / LSM.lv

The Organization for Economic Co-operation and Development (OECD) on Tuesday significantly raised its global economic growth forecast for this year. Cautious optimism is fueled by the vaccination of the population against Covid-19, which is gradually gaining momentum, and the ambitious economic support measures implemented by the US government, which have also significantly improved the outlook for the world economy.

OECD forecastthat the global economy will grow by 5.6% this year instead of the 4.2% forecast in December. Experts say the global economy could reach pre-pandemic levels by mid-2021.

The OECD predicts that the US economy will grow by 6.5% this year, instead of the 3.2% previously estimated, given the government’s $ 1.9 trillion economic support program.

The economies of the eurozone countries could grow by 3.9% this year, while China is expected to grow by 7.8%.

However, OECD experts also point to risk factors that could slow the pace of economic recovery: the lack of rapid vaccination and the spread of new strains of Covid-19, which will force governments to re-impose restrictions and reduce economic activity.

The OECD emphasizes that vaccination of the population against Covid-19 is currently a priority from both an epidemiological and an economic point of view. Every effort must be made to speed up vaccination, otherwise it will have long-term economic and social consequences.

The OECD also calls on rich countries to help supply Covid-19 vaccines to poorer countries, as the costs of such assistance programs would far outweigh the benefits of a faster global economic recovery.

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