The Organization for Economic Cooperation and Development (OECD) on Tuesday revised upward its growth forecast for this year in response to the promising pace of vaccination in major economies.
The OECD is no longer counting at 4.2 percent, but it expects the global economy to grow by 5.6 percent this year, according to a report published on Tuesday (pdf). The Organization for Economic Cooperation and Development warns of large regional differences in the rate of growth and vaccination.
A situation in which one country can open again and another cannot open must be avoided. In particular, Europe should increase the number of vaccinations. Steps must also be taken to ensure that poor countries can also keep up with the vaccination rate. According to the Organization for Economic Cooperation and Development, this is doing more to the global economy than it costs.
The OECD relies mainly on India, China and the United States as engines of growth this year. For example, the organization has high expectations about US President Joe Biden’s fiscal stimulus.
In addition, the Organization for Economic Cooperation and Development says governments should not tighten fiscal constraints too much at this time. However, they must ensure that their economies can afford the support measures. The graft rate also plays a role. Financial support must be provided for the vaccination to be covered so that shops and businesses can fully reopen their doors.
“Low vaccination rates could undermine various financial support measures,” OECD chief economist Lawrence Boone said earlier on Tuesday.