For the Organization, global growth is expected to approach 6% this year thanks to the actions of public authorities and central banks. This is the highest figure since 1973. It could even be nearly 1 percentage point higher if one-tenth of the excess savings accumulated during the pandemic were spent.
The improvement is real. The whole question is whether it will be sustainable. By publishing its new forecasts this Monday, the Organization for Economic Co-operation and Development (OECD) expects that activity growth will reach 5.8% this year after a contraction of 3.5% in 2020.
“This is the highest figure since 1973,” commented Laurence Boone, the Organization’s chief economist, “Global economic activity has now returned to its pre-pandemic level but will remain, by the end of 2022, below pre-crisis projections,” the organization warns, however. There will be a shortfall of $3 trillion in GDP compared to the projections made before Covid.
