OECD lowered 2021 global growth forecast slightly to 5.7%, down from May’s projection of 5.8%. 2022 global growth was revised slightly higher to 4.5%, up from 4.4%. It added, “the global economy is growing far more strongly than anticipated a year ago but the recovery remains uneven, exposing both advanced and emerging markets to a range of risks”.

It also said there is a “marked variation in the outlook for inflation”. But the inflationary pressures “should eventually fade”. “Consumer price inflation in the G20 countries is projected to peak towards the end of 2021 and slow throughout 2022. Wage growth remains broadly moderate and medium-term inflation expectations remain contained.”

Chief Economist Laurence Boone said: “Policies have been efficient in buffering the shock and ensuring a strong recovery; planning for more efficient public finances, shifted towards investment in physical and human capital is necessary and will help monetary policy to normalise smoothly once the recovery is firmly established.”


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