Global GDP projected to rise by 5.7% this year, according to Organization for Economic Co-operation and Development
The Organization for Economic Co-operation and Development (OECD) on Tuesday lowered its global economic growth forecast for 2021 by 0.1 percentage points.
The world gross domestic product (GDP) is projected to rise by 5.7% this year,according to OECD’s latest Interim Economic Outlook.
“Global GDP has now surpassed its pre-pandemic level, but output and employment gaps remain in many countries, particularly in emerging-market and developing economies where vaccination rates are low,” it said.
Noting that the global economic recovery is projected to continue but remain uneven, the OECD said the world economy is expected to grow by 4.5% in 2022, revised up from the previous projection of 4.4%.
The OECD highlighted that growth prospects in the advanced economies will increase with the backing of a strong rebound in Europe, the likelihood of additional fiscal support in the US next year, and lower household saving.
The eurozone economy is foreseen to expand by 5.3% in 2021 and 4.6% in 2022, both were revised upward.
In the US, the GDP will go up by 6% this year and 3.9% next year, the OECD said while keeping its projections for the Chinese economy unchanged at 8.5% and 5.8%, for 2021 and 2022, respectively.
The economic growth forecast for Turkey was revised upwards by 2.7 percentage points as its GDP is expected to rise 8.4% in 2021. The country’s economy will boost 3.1% next year, it said.