[Asia Economy Reporter Buaeri] The Organisation for Economic Co-operation and Development (OECD) projected the global economic growth rate for this year at 5.7% on the 21st (local time).
In its mid-term economic outlook published on the same day, the OECD presented this forecast, lowering it by 0.1 percentage points compared to May.
However, the growth rate forecast for next year was raised by 0.1 percentage points to 4.5%.
The OECD assessed that although the economic recovery continues due to stimulus measures and vaccination efforts in various countries, the momentum has somewhat slowed down.
It also explained that while the global Gross Domestic Product (GDP) has recovered to pre-COVID-19 levels, it still falls short of the pre-pandemic growth trajectory.
The OECD pointed out that the recovery in GDP and employment remains highly uneven across countries and sectors.
The Delta variant's economic impact varies depending on vaccination rates in each country, the OECD stated.
The OECD noted that countries with high vaccination rates experience relatively weaker economic impacts, but psychological contraction may constrain short-term growth.
In regions such as Asia with low vaccination rates, rising global raw material prices, production capacity constraints, and supply disruptions have led to widespread increases in export prices.
The OECD predicted that the impact of the Delta variant will gradually ease and that growth will be stronger than expected next year, supported by a strong rebound in Europe, additional fiscal policies in the United States, and household consumption.
By country, the G20 growth rate was lowered by 0.2 percentage points to 6.1% this year and raised by 0.1 percentage points to 4.8% next year.
South Korea's growth rates for this year and next year were raised by 0.2 and 0.1 percentage points to 4.0% and 2.9%, respectively.
The OECD also raised the inflation rate forecast for the G20 countries to 3.7% this year and 3.9% next year, up by 0.2 and 0.5 percentage points compared to May.
The OECD called for international cooperation for vaccine distribution, active maintenance of macroeconomic policies, and structural reforms going forward.
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