InvestorQ : Has the projection of growth for the year by OECD shown improvement?
sarah Leo made post

Has the projection of growth for the year by OECD shown improvement?

diksha shah answered.
6 months ago

I will not say that projections of growth have improved. Rather, the other way to put it is that the projections of contraction in growth have eased relatively compared to the last set of projections made in June this year.

From that perspective, the latest macro report from the Organization for Economic Cooperation and Development, or OECD, has some room for hope. However, these projections also have a word of caution too.

The good news is that the global economy is not likely to shrink by 6% as was originally anticipated but at around -4.5%. While this is better than the June projections, it still shows that the recovery has been slower than what was originally expected.

There are two challenges that the global economies are likely to face. Firstly, supply chain disruptions are likely to continue and the lag effect is likely to persist for some more time. Secondly, the recurrence of COVID-19 cases has added a new dimension to the problem.

The growth for the US and the EU economies will not be as bad as originally estimated. China could be the only large economy to actually show a positive growth in a demanding year. OECD has pointed out that India may be among the worst performing economies.