OECD sees global economy turning the corner on coronavirus crisis

Reuters reports that the Organisation for Economic Cooperation and Development (OECD) said that the outlook for the global economy is improving as vaccines emerge and a Chinese-led recovery takes hold.

The global economy will grow 4.2% next year and ease to 3.7% in 2022, after shrinking 4.2% this year, the OECD said in its latest Economic Outlook.

"We're not out of the woods. We're still in the midst of a pandemic crisis, which means that policy still has a lot to do," said OECD chief economist Laurence Boone.

Overall global gross domestic product will return to pre-crisis levels by the end of 2021, led by a strong recovery in China, the OECD said.

But that masked wide variations among countries, with output in many economies expected to remain about 5% below pre-crisis levels in 2022.

China will be the only country covered by the OECD to see any growth at all this year, at 1.8%, unchanged from the last forecast in September. It will gain speed to 8% in 2021 - also unchanged - before easing to 4.9% in 2022.

The United States and Europe are expected to contribute less to the recovery than their weight in the global economy.