The Organization for Economic Cooperation and Development (OECD) on Tuesday revised its growth forecast for this year upward in response to the promising pace of vaccination in major economies.
The Organization for Economic Cooperation and Development 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 should be avoided. Europe, in particular, 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 OECD says governments should not tighten fiscal restrictions too much at this time. However, they must ensure that their economies can afford the support measures. The vaccination rate also plays a role. Financial support must be provided for the vaccination to be covered so that shops and businesses can fully open again.
“Low vaccination rates could undermine various financial support measures,” OECD chief economist Lawrence Boone said earlier on Tuesday.