The OECD has enhanced Argentina’s growth prospects for 2021

Similarly, by reducing public employment and subsidies and safeguarding “well-targeted” social spending, public spending can improve efficiency, according to the agency.

The authors of the report seek to underline the significant imbalances given by countries (low-income countries have lost the most since the outbreak of the crisis), and vaccination continues to be the top priority, and that is what is happening. Save lives, maintain incomes, open borders and remove restrictions.

At the same time, he lowered his forecast slightly Increase World Economy in 2021. The world economy is expected to grow 5.6% this year, down 0.1 percentage points from its previous forecast for September. The agency noted that there are “very different economic realities” between different regions and estimates that “recovery will continue to be dangerous” until vaccines are distributed worldwide.

The Paris-based organization noted that “working inequalities have emerged.” According to the OECD, these gaps are a reflection of inequalities in health systems, public policy, the difficulties of workers in certain sectors and rising prices.

This report does not contain estimates of the origin of the Omigran variant, which was discovered a few days ago and its effects are still uncertain in the world economy. However, they warned that “this could pose a threat to the recovery of the world economy.”

Forecasts for the region

Meanwhile, activity forecasts for 2022 are in line with their earlier predictions of a 4.5% expansion. For the Eurozone, the OECD is projected to grow 5.2% in its growth forecast for 2021, while for the United States, the OECD has revised its forecasts to 5.6% this year and the next 3.7%. .

For Brazil, the OECD cut its forecast for 2021 by 0.2 points, forecasting 5% growth, with a 1.4% expansion expected for next year, with a darker outlook than its previous report. Say less than 0.9 pp. Mexico and Brazil are likely to have the highest inflation this year.

In 2022, Colombia will be the fastest growing country (5.5%), followed by Costa Rica (3.9%), Chile (3.5%), Mexico (3.3%), Argentina (2.5%) and Brazil (1.4%).