OECD raises global growth forecast as vaccine rollouts, US stimulus revivify outlook

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OECD raises global growth forecast as vaccine rollouts, US stimulus revivify outlook

On Monday, OECD (Organization for Economic Co-operation and Development), the 38-member pact founded back in the 1961s to spur up world trade, said in its latest Economic Outlook publication that the global economic landscape had been brightening up as an acceleration in vaccination drive alongside massive US stimulus injecting trillions of dollars into the world’s largest economy had reversed global economic momentum into a pre-pandemic level.

In point of fact, latest Economic Outlook publication from OECD released earlier in the day had unveiled that the global economy had been set to grow by 5.8 per cent this year and 4.4 per cent in 2022, modestly higher from its prior estimate of a 5.6 per cent and a 4.0 per cent growth in 2021 and 2022 respectively.

OECD raises global growth forecast

In tandem, adding that the global economy might have returned to a pre-pandemic level, but had yet to achieve a growth momentum witnessed before the onset of pandemic outbreak, OECD Chief Economist Laurence Boone said in the editorial of the outlook, “The world economy is currently navigating towards the recovery, with lots of frictions.

The risk that sufficient post-pandemic growth is not achieved or widely shared is elevated. Nonetheless, adding to a growing holocaust for a number of emerging market economy which had yet to enhance vaccine deployments amid a second-wave of pandemic outbreak this year, the OECD report had forecasted several emerging market economies would likely to be held back due to a prolonged period of pandemic-led stiffer lockdown measures.

Paris-based OECD had urged Central Banks across the globe to keep financial conditions relaxed amid a likely rise in inflation indicators.