- The OECD predicts that global GDP will grow by 5.6% this year, and continue the recovery with 4% growth in 2022.
- For the smoothest possible recovery, effective vaccination rollout is required.
- This includes ensuring that lower-income countries receive adequate vaccination access.
The OECD released its latest interim Economic Outlook report on Tuesday, providing us with an updated look at the pandemic’s impact on the world economy. Striking a cautiously optimistic tone, the report finds that "global economic prospects have improved markedly in recent months," revising its GDP growth forecast for 2021 upward by more than 1 percentage point compared to the December issue of the OECD Economic Outlook.
Boosted by the global vaccine rollout, gradual reopenings and government stimulus, the OECD expects global GDP to grow by 5.6 percent this year, and continue the recovery with 4.0 percent growth in 2022. A high degree of uncertainty remains, however, as new virus mutations could spark another wave of infections during the vaccination campaign or even prove resistant to the vaccines currently deployed.
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As the following chart shows, the OECD expects global economic output to return to pre-pandemic, i.e. Q4 2019 levels in the first half of this year, with the further growth trajectory depending on the speed of the vaccine rollout among other factors. "The top policy priority is to ensure that all resources necessary are used to produce and fully deploy vaccinations as quickly as possible throughout the world," the OECD notes, adding that the "resources required to provide vaccines to lower-income countries are small compared with the gains from a stronger and faster global economic recovery."
What is the World Economic Forum doing about the circular economy?
The World Economic Forum has created a series of initiatives to promote circularity.
1. Scale360° Playbook was designed to build lasting ecosystems for the circular economy and help solutions scale.
Its unique hub-based approach - launched this September - is designed to prioritize circular innovation while fostering communities that allow innovators from around the world to share ideas and solutions. Emerging innovators from around the world can connect and work together ideas and solutions through the UpLink, the Forum's open innovation platform.
Discover how the Scale360° Playbook can drive circular innovation in your community.
2. A new Circular Cars Initiative (CCI) embodies an ambition for a more circular automotive industry. It represents a coalition of more than 60 automakers, suppliers, research institutions, NGOs and international organizations committed to realizing this near-term ambition.
CCI has recently released a new series of circularity “roadmaps”, developed in collaboration with the World Economic Forum, the World Business Council for Sustainable Development (WBCSD), McKinsey & Co. and Accenture Strategy. These reports explain the specifics of this new circular transition.
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3. The World Economic Forum’s Accelerating Digital Traceability for Sustainable Production initiative brings together manufacturers, suppliers, consumers and regulators to jointly establish solutions and provide a supporting ecosystem to increase supply chain visibility and accelerate sustainability and circularity across manufacturing and production sectors.
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