The OECD said that it has raised its 2021 global GDP growth forecast , but warned that “too many headwinds remain”, with limited COVID vaccines reaching emerging economies and inflation starts to reach markets.
The OECD said that the world economy will expand by 5.8% in FY21, the highest since 1973 and up from a previous estimate of 5.6%. Most economies are expected to return to their 2019, pre-pandemic levels next year i.e. FY22.
OECD Head Laurence Boone said that it is with some relief that we can see the economic outlook brightening, but with some discomfort that it is doing so in a very uneven way. The recovery is uneven so far, with the United States and China returning to pre-pandemic levels and forecast to have much stronger growth than other major economies such as Japan and Germany. It could take an additional year for most of Europe and three to five years for Mexico and South Africa to catch up.
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