Britain’s growth prospects are improving, but the economic ‘mark’ of the epidemic will be the worst of all G7 countries, the OECD says

The Organization for Economic Co-operation and Development (OECD) has warned that the UK economy will grow faster than expected this year and next, but is still expected to suffer the greatest long-term economic damage in the world. Industrialized countries in the wake of the epidemic.

The Organization for Economic Co-operation and Development (OECD) has updated its forecast for economic growth in the UK to 5.1% this year and next year, in its comprehensive assessment of the state of the world economy, released every six months. 7.2%. 4.7% to 5.5% this year and next year.

The Paris-based institution said the reform, which has been reflected in several major economies, was the product of the spread of vaccines in most parts of the developed world.

But chief economist Lawrence Boone warns that there is a huge difference between the rich world and the poor world.

“The world economy is currently moving towards recovery with too much friction,” she said.

“The risk of not achieving enough growth after the epidemic or after it has been widely shared is high. This will largely depend on the adoption of a flexible and sustainable policy framework and the quality of international cooperation. ”

OECD says epidemic may boost US economy

However, the OECD has also calculated a possible shift in long-term growth projections for various economies, comparing its most recent forecast for national income levels in 2025 with its previous forecast for the epidemic.

This comparison gives an idea of ​​the long-term economic impact of recent events – what economists call “scars”.

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While they found that the United States appears to have a larger national income than before – in other words, the epidemic period strengthens it rather than fixes it – most other countries have not been so lucky.

It said the UK would face the biggest crisis of any G7 economy, with economic output declining by an average of 0.5% every year over the next four years.

The G7 includes the United States, Japan, Germany, the United Kingdom, France, Italy, and Canada.

The OECD economic forecast indicated that this was higher as a result of Britain’s departure from the European Union: “The UK may face the biggest decline among G7 countries (a 0.5 percent decrease per year), partly” Shows additional negative from the. Side effects of the show since effects Brexit 2021..

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