OECD hikes world economic forecast on vaccines, US stimulus
PARIS (AFP) - The OECD sharply raised its 2021 global growth forecast on Tuesday (March 9) as the deployment of vaccines and a huge US stimulus programme have greatly improved economic prospects. The Paris-based Organisation for Economic Co-operation and Development says it now expects the global economy to grow by 5.6 per cent, an increase of 1.4 percentage points from its December forecast. "Global economic prospects have improved markedly in recent months, helped by the gradual deployment of effective vaccines, announcements of additional fiscal support in some countries, and signs that economies are coping better with measures to suppress the virus," it said in a report. The world recovery will be largely carried by the United States, thanks to President Joe Biden's US$1.9 trillion stimulus programme, Laurence Boone, chief economist of the OECD, told AFP. The OECD now sees the US economy climbing by 6.5 per cent this year, an increase of 3.3 percentage points from its previous forecast. Ms Boone said the US recovery accounts for one percentage point of the global growth revision. 'Significant risks' The OECD said global output could rise above the pre-pandemic level in mid-2021...
