(RTTNews) – The Organization for Economic Co-operation and Development has updated its overall economic forecasts by 2020, with production expanding following the easing of coronavirus containment measures and the initial reopening of business.
According to the interim report, published Wednesday, the world economy will contract by 4. 5% this year from the 6% decline estimated in June, while the expansion projection for 2021 has been revised to 5% from 5. 2%.
The Paris-based firm noted that without immediate and effective political intervention in all economies, the contraction in production would have been much greater.
However, he warned that the economic landscape remains exceptionally uncertain, as the Covid-19 pandemic continues to charge a high price in economies and societies.
The report masks abundant country-to-country reviews, with upward revisions in China, the United States and Europe in a context of weaker-than-expected effects in India, Mexico and South Africa.
US GDP by 2020 is expected to decline to 3. 8%, which was drastically revised to -7. 3% projected in June. The prospect of expansion for next year was reduced to 4% from 4. 1%.
At the same time, China’s GDP is expected to increase by 1. 8% compared to the previous forecast of -2. 6%. In 2021, the prospect of expansion increased to 8% from 6. 8%.
The OECD noted that China’s activity returned to prepandemic levels at the end of the quarter, driven by strong infrastructure investment.
Euro GDP is expected to fall by 7. 9% this year before emerging to 5. 1% in 2021. In June, the OECD forecast a drop of 9. 1% in 2020 and 3. 7% next year.
At the same time, the outlook for India’s GDP was drastically revised to -10. 2%, compared to the -3. 7% projected in June, but the expansion is expected to rebound to 10. 7% next year, which has been revised upwards by 2. 8 percentage points.
The company has raised the UK’s GDP decline to -10. 1% from 11. 5% this year, while expansion forecasts for 2021 have fallen to 7. 6% from 9%.