The OECD has improved its estimate of world economic growth

The world economy is expected to grow much faster this year than originally expected. This was pointed out by the latest estimate by the Organization for Economic Co-operation and Development (OECD), which shows more than 5% growth in the global economy. The OECD originally assumed that growth would only just exceed 4 percent. At the same time, the organization has improved its growth forecast for 2022. The OECD announced on Tuesday that it expects the world economy to grow at 5.6 percent this year. This represents a significant improvement over the forecast from its previous estimate in early December, which set the world economy to grow at 4.2 percent in 2021. The organization, whose data was published by Reuters, also improved its estimate of the development of the world economy for next year. While it originally expected growth of 3.7 percent, the new forecast indicates growth in 2022 at 4 percent. The gradual acceleration of the supply of Covid-19 vaccines to the market, as well as the approval of a new economic stimulus package in the USA, contributed to the improved forecast, the OECD added. However, several factors may continue to adversely affect the development of the economy, the organization added. According to OECD, it will be important how quickly governments will be able to vaccinate the population, how quickly the current restrictions in the economy will be lifted and whether the new mutations in the virus will be kept under control. At the same time, the OECD points out that there will be significant differences between growth economies. The US economy should progress much faster, which will be supported not only by vaccination but also by an economic support package worth USD 1.9 trillion (EUR 1.6 trillion). The OECD expects the US economy to grow by 6.5 percent this year, while in the December forecast it expected growth of 3.2 percent. Looking ahead, it improved its growth forecast from 3.5 to 4 percent.