Economic Outlook Seen Brightening 12/01 06:05
PARIS (AP) -- The world economy will bounce back to its pre-pandemic levels
by the end of next year, a global watchdog predicted Tuesday, though that
recovery will be uneven across the countries and big risks remain.
In a wide-ranging report on the economy, the Organization for Economic
Cooperation and Development said that progress on coronavirus vaccines means
that the outlook has improved for the first time since the pandemic began.
"The road ahead is brighter, but challenging," wrote Laurence Boone, chief
economist at the OECD, in the report.
It predicts the global economy will shrink about 4.2% this year and rebound
by the same rate in 2021 before growing 3.7% the following year.
China, which has brought its virus infections under control better than many
major economies, will account for a big part of that economic recovery, while
Europe, Japan and the U.S. will lag, the OECD said.
The organization, which advises countries on economic policy, said that
governments should continue to support people who have been hit hardest by the
pandemic and the restrictions on public life and businesses.
It recommends investing public money in areas that deliver long-term
benefits like health care, education, reducing inequality and fighting climate
change. Global cooperation is sorely needed to maximize the impact of
government efforts to bring the economy back to health.
"International cooperation has faltered in recent years, just when it was
needed more than ever," Boone said.