he Organization for Economic Cooperation and Development has raised its forecast for global economic growth in 2020 but cautioned that the recovery from the coronavirus pandemic remains uncertain and fragile.
In its latest interim economic assessment released on Wednesday, the OECD said it now expects the world economy to shrink by 4.5% this year before expanding by 5% in 2021. In June, it had estimated the global economy would contract by 6% in 2020 and grow 5.2% next year.
“After an unprecedented collapse in the first half of the year, economic output recovered swiftly following the easing of containment measures and the initial re-opening of businesses,” the report said.
But the OECD noted that the pace of the global recovery has lost momentum since June as countries have imposed new restrictions to combat resurgences of the virus and that the upward revision to global growth in 2020 masks considerable variations across countries.