The Organization for Economic Cooperation and Development significantly raised its forecast for the global growth from 4.2 to 5.6 percent in 2021, relying on the combined effects of the massive US recovery plan and vaccination campaigns.
According to the organization, global economic prospects have clearly improved in recent months, with the gradual availability of effective vaccines and the announcement of new support measures in some countries and indicators which show that the economy is adapting better than expected to the imposed restrictions, calling for accelerating the production of anti-Coronavirus vaccines.
Lawrence Boone, chief economist at the 37-nation organization, stated that "the US President Joe Biden's $1900 billion plan to revive the world's largest economy, contributes 1 percent to this review of global growth expectations." She also warned of the risks of increasing interest rates unless the vaccination campaigns gain more momentum, considering that high interest rates lead to an increase in the cost of public debt, which harms the ability of countries to support the economy, and may hinder the financial markets that have benefited from easy money for years.
Source (Al-Arabiya.net website, Edited)
