The global economy has performed better-than-expected but it is still on track for an \u201cunprecedented\u201d decline in output, the Organization for Economic Cooperation and Development warned Wednesday.<\/p>\n
In its latest economic outlook, the OECD said the world economy will contract by 4.5% this year \u2014 an upward revision from an estimate made in June that pointed to a 6% fall in gross domestic product (GDP).<\/p>\n
\u201cThe drop in global output in 2020 is smaller than expected, though still unprecedented in recent history,\u201d the OECD said in its report.<\/p>\n
Going forward, the OECD expects the global economy to grow by 5% in 2021. Nonetheless, the outlook \u201cremains exceptionally uncertain\u201d due to the coronavirus pandemic.<\/p>\n
Critically-hit sectors, such as the travel and tourism industries, have not fully recovered from the strict lockdown measures imposed earlier this year. Many countries are grappling with a resurgence in the number of infections. As a result, authorities might introduce new restrictions in the coming weeks to contain new waves \u2014 which would add further pressure on the global economy.<\/p>\n
\u201cOutput picked up swiftly following the easing of confinement measures and the initial re-opening of businesses, but the pace of the global recovery has lost some momentum over the summer months,\u201d <\/p>\n
The Paris-based institution, an intergovernmental body which aims to stimulate economic development, also warned of \u201cconsiderable differences\u201d across different countries.<\/p>\n
China, the United States and the euro area are expected to perform better than originally forecast in June. In comparison, growth expectations for India, Mexico and South Africa have worsened.<\/p>\n
China is seen growing by 1.8% in 2020 \u2014 the only country among the OECD estimates that\u2019s expected to experience growth.<\/p>\n
By contrast, the U.S. economy is set to contract by 3.8% and the euro area by 7.9%.<\/p>\n
The picture is even more dire for India, Argentina, the U.K., South Africa and Mexico, which are all forecast to collapse by more than 10%.<\/p>\n","protected":false},"excerpt":{"rendered":"
The global economy has performed better-than-expected but it is still on track for an \u201cunprecedented\u201d […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-863","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\n