OECD Cuts 2021 Global Growth Estimate amid Virus Resurgence

Economy

Paris, Dec. 1 (Jiji Press)--The OECD on Tuesday put world economic growth for 2021 at 4.2 pct in real terms, weaker than the 5.0 pct expansion estimated in September, mainly due to the resurgence of the novel coronavirus in Europe and North America.

In its Economic Outlook report, the Organization for Economic Cooperation and Development said that the world's gross domestic product will shrink 4.2 pct this year, better than its September forecast of a 4.5 pct decline.

The estimate for next year is based on the assumption that vaccines for the coronavirus will become available across the globe by late 2021. For 2022, the OECD estimates real GDP growth for the world at 3.7 pct.

"Managing the pandemic will still impose strains on the economy," OECD chief economist Laurence Boone said. Economic activities "will continue with fewer face-to-face interactions and partly closed borders for a few more quarters," she said.

But Boone said, "For the first time since the pandemic began, there is now hope for a brighter future," adding that progress in the development of vaccines and treatment "has lifted expectations" and that "uncertainty has receded" as a result.

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