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World economy will grow by 5.6% this year - OECD forecast

Business and Finance

The pandemic is exacerbating the gap between different economic actors and industries, increasing social inequality, and having a particularly strong impact on socially vulnerable segments of the population, the OECD said.

World economy will grow by 5.6% this year - OECD forecast

The Organization for Economic Co-operation and Development (OECD) today released a global economic outlook report, according to which the global economy is expected to grow by 5.6% in 2021, and the key to a sustained economic recovery is the rapid and efficient distribution of vaccines from coronavirus on a global scale.

According to the forecast, by mid-2021, global production will return to pre-pandemic levels, and in 2022 the world economy is expected to grow by 4.0%. If the production of vaccines is accelerated, and their coordinated distribution is established around the world, outstripping the spread of new COVID-19 mutations, then anti-epidemic restrictive measures can be weakened faster. In this case, the prospects for global economic growth may be better than currently assumed. If the rate of vaccination is insufficient to reduce disease incidence, or if the rapid spread of new strains necessitates renewal of existing vaccines, consumer spending and business confidence will be severely affected.

As predicted by the authors of the report, in the United States this year economic growth will be 6.5%, in the eurozone - 3.9%, in Japan - 2.7%, and in China - 7.8%.

The report notes that over the past few months, many industries have re-started their work, vaccination has been consistently carried out. A number of fiscal stimulus measures were adopted, which are likely to be a powerful boost to economic activity. At the same time, the pandemic exacerbates the gap between different economic agents and industries, increases social inequality, has a particularly strong impact on socially vulnerable groups of the population and, probably, undermines the prospects of many people in the labor market, as well as their standard of living in the long term. p>

The report calls for scaling up vaccinations and faster and more targeted financial incentives to boost production, build confidence and continue to provide support to the people and businesses most affected by the pandemic, and lay the foundation for sustainable recovery .

“The pace of vaccination is key. It must be accelerated and must cover the entire planet. For this purpose, it is necessary to continue to expand international cooperation and coordination on an existing basis. Only in this way will we be able to concentrate forces, continue development and lay the foundation for a consistent recovery of the global economy, ”said OECD Secretary General Angel Gurria.

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