Financial outlook vivid however dangers stay: OECD


Paris, December 1

The world economy will bounce back to its pre-pandemic levels by the end of next year, a global watchdog predicted on Tuesday, though that recovery will be uneven across the countries and big risks remain.

In a wide-ranging report on the economy, the Organisation for Economic Cooperation and Development (OECD) said progress on coronavirus vaccines means the outlook has improved for the first time since the pandemic began.

Global economy to shrink by 4.2%

  • The watchdog has predicted that the global economy will shrink about 4.2% this year and rebound by the same rate in 2021 before growing 3.7% the following year
  • China will account for a big part of that economic recovery, while Europe, Japan and the US will lag, the OECD said in the report

“The road ahead is brighter, but challenging,” wrote Laurence Boone, chief economist at the OECD, in the report.

It predicts the global economy will shrink about 4.2% this year and rebound by the same rate in 2021 before growing 3.7% the following year.

China, which has brought its virus infections under control better than many major economies, will account for a big part of that economic recovery, while Europe, Japan and the US will lag, the OECD said. The organisation said governments should continue to support people who have been hit hardest by the pandemic and the restrictions on public life and businesses.

It recommends investing public money in areas that deliver long-term benefits like healthcare, education, reducing inequality and fighting climate change. Global cooperation is sorely needed to maximise the impact of government efforts to bring the economy back to health. — AP



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