OECD sees growth for global economy

The Organisation for Economic Cooperation and Development (OECD) says the global economy is projected to grow at 5.5 per cent this year and four per cent next year, raising hopes of faster recovery from the disruption of Covid-19 than earlier expected.

“Prospects have improved markedly in recent months, helped by the gradual deployment of effective vaccines, announcements of additional fiscal support in some countries and signs that economies are coping better with measures to suppress the virus,” said the OECD in a report published this month.

The report says India is expected to record the highest growth this year at 12.6 per cent, followed by China and the United States at 7.8 per cent and 6.5 per cent respectively.

However, OECD warns that there are increasing signs that recovery will be uneven across the board given the different approaches adopted by economies to contain the spread of the virus.

“Strict containment measures will hold back growth in some countries and service sectors in the near term while others will benefit from effective public health policies, faster vaccine deployment and strong policy support,” the report said.

Kenya began rolling out its vaccination drive last week with healthcare workers first in line to receive the Oxford-AstraZeneca coronavirus doses.

The recent edition of the World Bank’s Kenya Economic Update said Kenya’s economy will grow at 6.9 per cent in the best-case scenario, pushed by recovery in private and government consumption.

“The reopening of the economy is expected to boost activity, reduce unemployment and support wage and income growth,” said the report released in November 2020.

“As a result, private consumption is projected to grow at 6.3 per cent in the medium term.”