OECD: Global Economic Growth Slightly Less Strong Than Previously Thought

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The global economy will grow slightly less rapidly this year than previously thought, mainly due to less strong growth of the US economy. That is what the Organization for Economic Co-operation and Development (OECD) says in a report.

 

The eurozone economy is growing faster than previously expected, according to the OECD, which speaks of an “unbalanced recovery” from the corona pandemic in the world.

The world economy should grow by 5.7 percent this year, according to the OECD. In May, this was still at 5.8 percent. For 2022, 4.5 percent is forecast, compared to 4.4 percent in the earlier estimate.

The growth forecast for the United States has been lowered to 6 percent this year, from an earlier forecast of 6.9 percent for the world’s largest economy. This weaker growth is partly due to the advance of the Delta variant of the coronavirus in the country. However, the OECD also points to the problems in the supply chain.

For the eurozone, the organization is now counting on a plus this year of 5.3 percent. Previously, 4.3 percent was provided for. The growth estimate for China remains unchanged at 8.5 percent.

The think tank argues that large differences in vaccination rates between countries contribute to the uneven economic recovery from the crisis. The recovery is, therefore, slower, especially in emerging countries. Therefore, it is very important that poorer countries also have sufficient access to resources to vaccinate on a large scale, according to the OECD.

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