December 17, 2020
The global output will return to pre-pandemic levels by the end of 2021 after witnessing a sharp 4.2% decline this year, the Organization for Economic Co-operation and Development (OECD) said in its economic outlook released on Tuesday.
The 37-member OECD projects global GDP to rise by around 4.2% in 2021 and by a further 3.7% in 2022, helped by COVID-19 vaccine rollouts and accommodative fiscal and monetary policies. The recovery will be led by China, which is forecast to grow by 8% next year, accounting for over one-third of world economic growth.
Currently this year the world economy is on course to plunge into its worst recession since the Second World War as the coronavirus forced half the world’s population to remain indoors, virtually shutting global businesses, trade and travel. Any hopes of a quick recovery were dashed by subsequent waves of the virus, which has killed about 1.5 million people.