OECD Raises Expectations for Global Growth in 2021

The Organization for Economic Cooperation and Development (OECD) expects the global economy will expand by 5.6% in 2021, raising its forecast for growth compared with an estimated rate of 4.2% in the previous report.

The OECD report issued on Tuesday noted that recovery from the Coronavirus impact this year will be stronger that what it expected at the end of 2020, due to the increased stimulus spending in the United States and the rollout of vaccines around the world.

The U.S. gross domestic product (GDP) is seen growing by 6.5% in 2021, while China is expected to register growth of 7.8%.

Meanwhile, economic growth in the Eurozone is seen at 3.9%.

This comes despite the OECD downgrading its growth forecasts for both France and Italy to 5.9% and 4.1%, respectively, but raised its growth expectations for the United Kingdom (UK) by 1% to 5.1%.

On the other hand, the biggest economy in Europe, Germany, is set to record 3% growth this year.

The global GDP is expected to register a slower growth of 4% next year, the report indicated.