In its new economic outlook, the Organisation for Economic Co-operation and Development notes that gross domestic product in most OECD countries has come above pre-Covid levels. But the problem persists with low-income economies.
The world’s gross domestic product reached pre-Covid levels in the third quarter of this year. Similar to most OECD countries. On a growth trajectory that has been abandoned because of the coronavirus pandemic, the world economy will not return until someone in late 2023. It follows the OECD’s new economic outlook.
Eurozone countries will be on a pre-crisis GDP trajectory at the turn of the second and third quarters of 2022, with G20 countries still taking about a year and a quarter longer. The OECD sees as the biggest threat the economic recovery is proceeding unevenly. Underdeveloped countries are exposed to the greatest risk of further economic lagging, where vaccination is progressing very slowly.
The OECD also forecasts that inflation will start to decline in the world early next year, but it will not return to pre-Covid values of around one per cent right away. For a crucial part of the world, the OECD predicts inflation of around three per cent a year until the end of 2023.