OECD slashes global growth outlook on spread of variants

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The Organization for Economic Co-operation and Development has downgraded its global growth forecast for this year, citing the spread of variants of the coronavirus.

The OECD released its latest forecast on Tuesday. He now expects the global economy to grow at 5.7%, down 0.1 point from the previous forecast for May.

The forecast for China remained unchanged at 8.5%, while the organization lowered its US projection by 0.9 points to 6%.

Japan’s forecast has been revised down 0.1 point to 2.5% due to the impact of the prolonged state of emergency on consumption.
The OECD predicts that global economic growth will continue to be strong. It also highlights the risk of accelerating inflation in the short term caused by factors such as a surge in demand.

Meanwhile, the Asian Development Bank cut its growth forecast for Southeast Asia, citing the spread of the coronavirus.

The AfDB now expects the region’s economy to grow 3.1% this year, down 1.3 points from its April forecast.

The growth forecast for Thailand was lowered by 2.2 points to 0.8%, that for Indonesia was lowered by 1 point to 3.5%, while that of Vietnam was reduced by 2.9. points at 3.8%.

The AfDB has downgraded its forecast for the entire Asia-Pacific region by just 0.2 percentage point to 7.1 percent growth, as it has kept its forecast for China unchanged.
Industrialized countries such as Japan and Australia have not been included.

The bank says the path to recovery in the region remains uneven due to uneven progress in immunization.


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