In the new economic outlook report, OECD raised global economic growth forecast to 5.8% this year, a “sharp upwards revision” from December’s projection of 4.2%. It said that “vaccines rollout in many of the advanced economies has been driving the improvement, as has the massive fiscal stimulus by the United States”. Growth is projected to slow to 4.4% next year.
The organization warned that this is “no ordinary recovery” and is likely to “remain uneven and dependent on the effectiveness of vaccination programmes and public health policies.” Some countries like Korea and US are ” reaching pre-pandemic per capita income levels after about 18 months”. But, “much of Europe is expected to take nearly 3 years to recover”. Mexico and South Africa would take between 3 and 5 years.