OECD lowers global, US economic growth forecasts

Sep 21, 2021: The OECD warned Tuesday of an "uneven" global economic recovery as it lowered its 2021 growth forecasts for the world and the United States while raising the outlook for Europe.

The world economy has bounced back this year on the back of stimulus measures, the rollout of effective Covid vaccines, and the resumption of many economic activities, the Organisation for Economic Co-operation and Development (OECD) said.

"The recovery remains very uneven, with strikingly different outcomes across countries," the OECD said in its interim economic outlook.

Global gross domestic product has surpassed its pre-pandemic level following last year's Covid-induced recession.

Global output is now expected to expand by 5.7 percent this year, down 0.1 percentage points from the organization's previous forecast in May.

But the outlook for 2022 has slightly improved, with 4.5 percent growth now expected, up by 0.1 points.

"Output and employment gaps remain in many countries, particularly in emerging-market and developing economies where vaccination rates are low," the report said.

AFP/APP