OECD upgrades global growth forecast

The Organization for Economic Cooperation and Development (OECD) has upgraded the global economic growth outlook to 5.8% this year, against the 5.6% of its March outlook.

Report informs, citing the organization, that world GDP growth is expected to be 4.4% next year, against 4% in its March outlook.

The organization points out that the global recovery is taking place amid ongoing coronavirus outbreaks that are becoming less frequent but more diffuse worldwide. And while the economy will return to pre-pandemic levels in most of the world by the end of 2022, this is not enough, the report says.

Eurozone GDP is expected to grow by 4.3% this year, against the 3.6% expected in December. At the same time, in 2022, the growth rates of the regional economy are expected to accelerate to 4.4%, although in December the OECD was expecting an increase in the GDP of the eurozone by 3.3%.

In its interim report in March, the OECD forecasted European GDP to grow by 3.9% in 2021 and by 3.8% in 2022.

The OECD estimates that the European economy contracted 6.7% in 2020, not 7.5% as predicted in December. In March, the organization estimated the fall in GDP in the eurozone last year at 6.8%.

The organization also improved its forecast for China's GDP growth for the current year to 8.5% from 7.8% expected in March.

The country's GDP growth estimate for 2022 has been improved to 5.8% from 4.9% in March.

The economic rebound is proceeding rapidly, and the growth will reach 8.5% this year and 5.8% in 2022, assuming the epidemiological situation remains under control. The investment will remain the key engine of growth, and consumption will recover only gradually, the report says.

According to the OECD, China's GDP growth was 2.3% in 2020.