OECD says global economic recovery strong

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A forecast by the Organisation for Economic Co-operation and Development (OECD) says the global economy is growing faster than expected as it regains the levels it had before the height of the coronavirus pandemic a year ago.

"The global economic recovery remains strong, helped by government and central bank support and by progress in vaccination.

"But although global GDP has now risen above its pre-pandemic level, the recovery remains uneven with countries emerging from the crisis facing different challenges," the OECD announced in Paris on Tuesday.

The organisation anticipates global economic growth of 5.7 per cent this year and 4.5 per cent in 2022.

"Ensuring the recovery is sustained and widespread requires action on a number of fronts - from effective vaccination programs across all countries to concerted public investment strategies to build for the future," OECD Secretary-General Mathias Cormann said.

Chief Economist Laurence Boone added that "planning for more efficient public finances, shifted towards investment in physical and human capital is necessary and will help monetary policy to normalise smoothly once the recovery is firmly established."

According to the OECD, the rapid increase in demand that has accompanied economic growth has driven up the prices of important raw materials such as oil and metals, as well as food.

Supply chains, which were disrupted as a result of the pandemic, have increased cost pressure and transport costs have risen significantly, it added.

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