Will Boost the US Global Economy Relief Plan: OECD – Commentary

An American recovery fueled Stimulus package From the president Joe Biden You will help feed a Economic recovery Globalism Faster than expected so you risk being left behind Europe, According to projections Organization for Economic Cooperation and Development.

Body based Paris He said he hoped it would be Global production Higher than pre-pandemic levels by mid-2021, after major economies showed greater resilience in late 2020. The effectiveness of the vaccine Governments add Additional stimuli On demand.

The Organization for Economic Cooperation and Development Improved global growth prospects for 2021 from 4.2 a 5.6% As for the United State More than double its expectations to 6.5%. Forms Organization for Economic Cooperation and Development Indicate that measurements Biden It will raise production around 3 a 4% On average in the first year of the package.

The strong bullish reviews show that Massive uncertainty About recoil in The worst economic crisis Must be remembered. Costs indebtedness And the Oil prices at United States of America They have returned to pre-crisis levels in recent weeks, which have had an impact on global markets.

As a result, the Expectations mounting Inflation pressing on Central banks, Who seek to ensure a smooth recovery with long and flexible policies.

In addition to the difficulties, there are prof Growing difference Between sectors and geographic regions. Like United States of America With a growth rate in 2021 closer to 7.8% From China This is for 3.9% From the eurozone Organization for Economic Cooperation and Development Expect positive spillover effects for some other economies, in particular Canada s Mexico.

But Europe On a more gradual path with Restrictions Implemented by governments and the total discretionary stimulus that would be “relatively moderate,” he said, slightly reducing the odds of France H Italy In 2021.

Forecasts Organization for Economic Cooperation and Development For this year and next year they propose that some European economies, such as ItalyAnd the Spain And the United kingdom, They will not recover Start Lost in 2022.

Separately, data from Start From the Eurozone published on Tuesday showed that the 19-nation region has contracted 0.7% In the last three months of 2020, 0.1 percentage point more than initially reported.