Due to unprecedented levels of government stimulus and increased vaccination rates, the economy of the United Sates is on track to grow at the fastest pace in nearly four decades, according to the Organization of Economic Cooperation and Development, Fox News says.
OECD’s forecast says that U.S. gross domestic product would grow 6.9% in 2021, the biggest jump since 1984, compared to a 3.5% annualized rate in 2020, when the economy came to a near standstill to due to COVID-19 pandemic.
Compared to December forecast of 3.5% and March report when OECD predicted the U.S. economy would grow by 6.5%, these new projections mark a more optimistic outlook.
OECD also predicts the global economy would grow 5.8% in 2021 but that living standards are expected to remain well below pre-crisis levels in many OECD nations even by the end of 2022.
Laurence Boone, chief OECD economist, said that it is very disturbing that not enough vaccines are reaching emerging and low-income economies, exposing them to a fundamental threat because they have less policy capacity to support activity.