OECD hikes 2021 world growth forecast to 5.6%

The Organization for Economic Cooperation and Development (OECD) has lifted its 2021 global growth forecast to 5.6%.

The deployment of coronavirus vaccines and a huge US stimulus program have greatly improved the world's economic prospects.

Tuesday's figure is an increase of 1.4% from the Paris-based organization's December forecast, and welcome news for the world economy. It plunged into recession last year, when governments introduced restrictions to curb the coronavirus pandemic.

The report's key findings

The report analyzed data from across the OECD's 36 wealthiest member states. During the presentation of its report, the OECD said:

• It expects global output to surpass pre-pandemic levels by the middle of this year.
• In 2022, it expects the world economy to grow by 4% — an improvement of 3.7% from its December forecast.
• The US and Chinese economies are expected bounce back faster, while other regions may continue struggling until the end of 2022.
• Nearly 10 million more people across the OECD's member states are out of work compared to before the pandemic.
• In poorer countries, "substantial job losses have increased poverty and deprivation of millions of workers," the report said.

Germany, France growth forecasts

Germany's gross domestic product (GDP) is expected to grow by 3%, the report said. France's growth is forecast to be greater than Germany's, at 5.9% this year.

Fragile economic gains

Chief economist Laurence Boone said the top priority should now be to produce coronavirus vaccines. She warned delays and further coronavirus mutations that defy treatment could weaken the expected recovery.

Fully deploying vaccines "throughout the world" as quickly as possible would "save lives, preserve incomes and limit the adverse impact of containment measures on well-being,'' the report said.

kmm/rt (AP, dpa)