Global Economic Outlook Revised by OECD: 2021 Growth Forecasts Upgraded to 3.1%

The Organization for Economic Cooperation and Development (OECD), headquartered in Paris, has recently revised its global economic outlook. According to the report, the world economy is expected to grow at a rate of 3.1 percent this year and 3.2 percent in 2025. This upgrade in the forecast is due to stronger-than-expected growth in both the United States and China.

Despite modest growth, the OECD noted signs of improvement in the global economy. Inflation has fallen faster than initially projected, and private sector confidence has increased. Recovery rates have varied among countries, with softer outcomes seen in Europe and low-income countries, while the United States and many large emerging-market economies experienced strong growth.

The US economy is expected to grow by 2.6 percent this year and 1.8 percent in 2025, according to the OECD’s forecast. China, the second-largest economy in the world, is projected to expand by 4.9 percent in 2024 and 4.5 percent next year. The eurozone is anticipated to see growth of 0.7 percent this year and 1.5 percent in 2025.

However, there are concerns about ongoing uncertainty in the global outlook, including geopolitical tensions in the Middle East that could potentially disrupt energy and financial markets