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Saturday, October 16, 2021

Vaccine rollout, U.S. stimulus boost global economic outlook – OECD

The global economic outlook has brightened as vaccine rollouts gain speed and the United States launches a vast new stimulus package, the OECD said on Tuesday, hiking its forecasts.

The world economy is set to rebound this year with 5.6% growth and expand 4.0% next year, the Organisation for Economic Cooperation and Development said in its interim economic outlook.

That marked a sharp increase from its last outlook in early December when the Paris-based policy forum forecast global growth of 4.2% this year and 3.7% next year.

People wait in a line stretching inside the Jacob K. Javits Convention Center on midtown Manhattan’s west side, to receive a dose of the coronavirus disease (COVID-19) vaccine at the site which has been converted into a mass vaccination center in New York City, New York, U.S., March 6, 2021. REUTERS/Jeenah Moon

“Not vaccinating fast enough risks undermining the fiscal stimulus that has been put in place,” OECD chief economist Laurence Boone told an online news conference.

Singling out Europe for its slow rollout, she said government money injected into the economy risked ending up in consumers’ savings if they cannot soon return to more normal lives.

Global gross domestic product was seen returning to pre-pandemic levels by the middle of this year, albeit with large divergences between countries.

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