OECD hikes 2021 world growth forecast to 5.6% on vaccine, stimulus rollout

OECD hikes 2021 world growth forecast to 5.6% on vaccine, stimulus rollout

PARIS: The OECD sharply hiked its 2021 global growth forecast on Tuesday as the deployment of coronavirus vaccines and a huge US stimulus program greatly improve the economic prospects. The Paris-based Organization for Economic Co-operation and Development said it now expects the global economy to grow 5. 6 percent, 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 recovery will be largely led by the United States thanks to President Joe Biden's $1. 9 trillion stimulus program, Laurence Boone, chief economist of the OECD, told AFP. The OECD sees the US economy growing 6. 5 percent this year, a very sharp increase of 3. 3 percentage points on its previous forecast, with the world as a whole returning to pre-pandemic output levels by mid-2021. But for the moment, only China, India and Turkey have surpassed pre-pandemic levels and the picture is very mixed elsewhere. "Despite the improved global outlook, output and incomes in many