OECD says global economic outlook improving but recovery uneven

Paris, May 31 (EFE).- The global economic outlook is improving, but the recovery will be “uneven,” the Organisation for Economic Cooperation and Development said Monday.

“In many advanced economies more and more people are being vaccinated, government stimulus is helping to boost demand and businesses are adapting better to the restrictions to stop the spread of the virus,” the OECD’s Economic Outlook report said.

“But as long as a large proportion of the world’s population is not vaccinated and the risk of new outbreaks remains, the recovery will be uneven and remain vulnerable to fresh setbacks,” it added.

The OECD warned that the risk of new variants and economic crises increases if a large portion of the world remains unvaccinated.

“Stronger international cooperation is needed to provide low-income countries with the resources — medical and financial — required to vaccinate their populations. Trade in healthcare products must be allowed to flow free of restrictions,” OECD Chief Economist Laurence Boone said.

OECD Secretary-General Angel Gurría added: “Effective vaccination programmes in many countries has meant today’s Economic Outlook is more promising than at any time since the start of this devastating pandemic.

“But for millions around the world getting a jab still remains a distant prospect. We urgently need to step up the production and equitable distribution of vaccines.”

According to the OECD, the global economy has returned to pre-pandemic activity and is expected to grow 5.8% in 2021 and 4.4% in 2022, “but real global income will still be some USD 3 trillion less by the end of 2022 than it would have been without a crisis”.

The OECD said the economic growth was thanks to successful vaccination campaigns and US President Joe Biden’s stimulus package — a $1.9 trillion COVID-19 relief bill — which added 3-4% to US GDP growth and 1% to the global GDP growth.

“While (South) Korea and the US are already back to their pre-pandemic income levels, much of Europe is expected to take an additional year for them to bounce back. In Mexico and South Africa, it could take another three to five years,” the OECD said.

Despite the rapid recovery, the OECD warns financial aid should not be withdrawn too quickly until countries are fully reopened and businesses back to normal levels of activity. EFE


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