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Optimistic forecast for the world economy - will grow by 5.6%

The Organization for Economic Co-operation and Development forecasts the world economy to grow by 5.6 percent, Anadolu Agency said.
The Organisation for Economic Co-operation and Development (OECD) revised its forecast for global economic growth for 2021 by 1.4 percentage points. The global economy is expected to grow 5.6 percent this year, the OECD said in its latest interim economic outlook. It suggests that faster and effective vaccination around the world is crucial. The outlook for global growth would be better than current forecasts if vaccine production and distribution were accelerated as the containment measures would be faster, BGNES reported.

"Global output is expected to reach pre-pandemic levels by mid-2021, but much will depend on the race between vaccines and emerging variants of the virus,” the organisation emphasizes.

The OECD said global gross domestic product (GDP) growth would be 4% in 2022.

Growth in the US is expected to be 6.5% in 2021, reflecting in part the large-scale fiscal stimulus now planned at a sustainable rate of vaccination.

In the euro area, where the level of fiscal stimulus is lower and the prevalence of vaccines is slower, GDP is expected to increase by 3.9% next year.

The G20 forecast rose by 1.5 percentage points to 6.2% this reported by the OECD.

Effective virus containment and regaining industrial activity dynamics have created brighter prospects for the Asia-Pacific region.

"In China, GDP growth is expected to be 7.8% this year; in Japan 2.7%; in South Korea 3.3%; and in Australia 4.5%”.

The OECD also increased its growth forecast for the Turkish economy by 3 percentage points to 5.9% in 2021 Turkey's GDP is expected to grow by 3% next year.

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