BEIJING, Sept. 17 — The Organisation for Economic Cooperation and Development (OECD) in its latest report published on Wednesday revised up its forecast for global economic output in 2020 to a contraction of 4.5 per cent, which was less negative than what had been expected in June, reported Xinhua news agency.
According to the OECD Interim Economic Assessment, the drop in global gross domestic product (GDP) is “smaller than expected” primarily due to upward revisions in China, the United States and Europe.
In the second quarter of 2020, China was the only country recording growth (11.5 per cent) among the G20 economies compared to that in the first quarter, which reflected a national recovery after the onset of the pandemic, according to a previous report by OECD.
The latest report showed weaker outcomes in India, Mexico and South Africa. It also said that in most economies, the level of economic output at the end of 2021 was projected to remain below that of 2009, and “considerably weaker” than prior to the COVID-19 pandemic.
The OECD suggested in the report that improved confidence could boost the global economy in 2021, considering the uncertainties brought by the virus. Meanwhile, a possible resurgence of the virus has been estimated to cut 2-3 per cent from global growth.