The Organization for Economic Cooperation and Development (OECD) expects the global economy to build momentum over the coming two years, with real gross domestic product (GDP) growth projected to reach pre-pandemic levels by the end of 2021, CNBC reports.
“For the first time since the pandemic began, there is now hope for a brighter future,” the OECD said Tuesday, citing progress with coronavirus vaccines and unprecedented government and global bank action to mitigate the economic impact of the crisis.
“The worst has been avoided, most of the economic fabric has been preserved and could revive quickly, but the situation remains precarious for many vulnerable people, firms and countries.”
In its latest economic outlook, the OECD said it expects the global economy to contract 4.2% this year. That reflects an upward revision from an estimate made in September that pointed to a 4.5% fall in real GDP.
Looking ahead, the group said worldwide economic growth would average 4% over the next two years. It expects real GDP growth to hit 4.2% in 2021 — trimmed from a September forecast of 5% — and 3.7% in 2022.
