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OECD expects substantial growth in global economy in 2021

The OECD expects substantial growth in the global economy this year. Growth is expected to decrease in 2022. Bottlenecks in shipping and supply chain pressure have contributed to rising inflation

Photo: Mario Tama/AFP/Ritzau Scanpix

The OECD still projects substantial growth in global economy this year, while growth is expected to taper off slightly in 2022, according to the organization's latest growth forecast sent out Tuesday.

The OECD has corrected its prognosis from May and now sees global GDP growth of 5.7 percent in 2021 against previous expectations of 5.8 percent. However, the economy is expected to grow by 4.5 percent in 2022 while the May prognosis showed expectations of 4.4 percent.

"The global upturn is in full swing, ensuring the highest growth in the global economy since 1973. High growth will continue into 2022, but will shift into a lower gear. High growth in the global economy and fewer restrictions will ensure more customers to Danish export companies," writes chief analyst at Danish Industry Allan Sørensen in a comment.

The OECD projects that the global recovery won't be even. While China – while the prospects of a slight slowdown – is expected to generate high growth, it looks weaker in Germany.

Furthermore, the OECD notes that the continued reopening of society around the world has caused a surge in the prices of commodities and food, while bottlenecks in the shipping industry and strained supply chains have contributed to rising inflation.

However, this is viewed as a temporary situation and is to a large extent limited to the US market and a number of developing economies, while Europa continues to experience a relatively low inflation pressure.

English Edit: Christoffer Østergaard

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