OECD Expects Delta Variant to Slow, But Not Derail, Global Economic Recovery
By Paul Hannon
The fast-spreading Delta variant of Covid-19 has slowed the pace
of the global economic recovery, but won't derail it, according to
new forecasts released by the Organization for Economic
Co-operation and Development on Tuesday.
In its latest quarterly report on the economic outlook, the
Paris-based research body lowered its growth forecasts for the
global and U.S. economies in 2021, the first downgrade since
December last year, when new infections were surging.
But it also raised its forecasts for next year, indicating that
some output has been delayed by, rather than lost to, the surge in
cases caused by the Delta variant. It also raised its forecasts for
inflation this year, but continues to expect that the pace of price
rises will ease in 2022 as vaccination programs advance in Asia and
other parts of the world.
The OECD lowered its growth forecast for the U.S. economy in
2021 to 6% from the 6.9% it had projected in May, and trimmed its
global growth forecast to 5.7% from 5.8%. It raised its growth
forecast for the eurozone, but left its projection for China
unchanged despite worries about the country's property market.
Write to Paul Hannon at email@example.com
(END) Dow Jones Newswires
September 21, 2021 05:14 ET (09:14 GMT)
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