The outlook for top global economies is improving, OECD says

The outlook for top global economies is improving, OECD says

In the report, published on Wednesday, the Organization for Economic Cooperation and upgraded itself to global economic output forecast for this year, as long as they are grown, “unprecedented in recent history,” the outlook is a little better in June.

Paris, according to the agency said it expects the world economy to shrink by 4.5% in 2020 before expanding by 5% in 2021. Previously, the OECD thought of as 6% of the global economy would contract next year will grow this year 5,2%.

But the agency, which represents the world’s biggest economy, and warned the headline figures mask major discrepancies. While 2020 has significantly boosted its forecasts for China and the United States and Europe, and the outlook is slightly raised and then lowered to the OECD developing countries hope that Mexico, Argentina, India, South Africa, Indonesiae and Saudi Arabia.

OECD economists said the downgrades reflected “in length to the spread of the virus, high levels of poverty and contacts, and the closer they should hold further.”

China is the only country in the G20 output is projected to rise in 2020, its economy grew 1.8%, 3.8% and 7.9% compared to a decrease in the United States is in decline in the 19 countries that use the euro. Beijing reported Tuesday that retail sales in August were higher than the previous year – the first time sales increased in 2020.

On the expansion of the country’s attention is to be in front of a lion in the garden, and an all speed, under the authority of one’s own ability to ensure that the pill is the same as the action of a rapid, paved the way to the back of the bounce, pointing to the infrastructure investment particularly strong.

In the meantime, we are not the sons of those who draw back, only 11,5% of this year in South Africa’s economy, according to the OECD. And India, Mexico’s finances are on track and the contraction of 10.2%. Because it is worse than the forecasts with the exception of the economy in Italy, from which it is hard to cut off hit with 10.5% for men.

“Uncertainty remains high

Of the OECD cautioned that its outlook but from a distance, and much depends on the trajectory of Covid-19 infection and to support ongoing policymakers. Added to global recovery “has lost any weight in the summer months” after an initial burst of activity.

“A recovery now under way is closely bound locked into these issues and concerns of the reopening, but the confidence is still fragile uncertainty remains high,” and the agency report said.

For some there is no counsel that the necessary is also contingent that has been posited in his own estimations of the material.

Of the OECD included, for example, that the British will reach a “basic” free trade agreement in goods and the European Union. But the talks could be crushed a controversial bill introduced by the government of Prime Minister Mark, what words would break out before the bill harmony.

The agency expects the UK economy to shrink by 10.1% this year, a slight improvement on its last estimate.

On the expansion of the lawmakers to approve the US $ 1.5 trillion and counting on a package tour is another reason for the collapse, though they had reached impasse. The agreement can not be touched more difficult to approach the November election.

The group’s global recovery is to predict in 2021 that were slightly lower in June. It stated that it was plain they see a long march and the Organization for the economic.

“The greatest economy, the level of output at the end of 2021 is projected to remain below that at the end of 2019, and far weaker than projected prior to the pandemic bullets at risk of long-lasting costs of pandemic,” the report said.

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