The global economy is recovering sharply. According to the Organization for Economic Cooperation and Development (OECD), it is advancing at a rate not seen since 1973 and much higher than the organization itself had projected six months ago, although there are significant differences between some countries and others.
Thus, the Organization for Economic Cooperation and Development predicts that the global economy, which has decreased by 3.5% in 2020, will grow by 5.8% this year and by 4.4% in 2022. There are countries like the United States or China that have already regained their per capita GDP Before the Coronavirus Crisis. However, at the other end, It will take Argentina five years to return to its pre-crisis level, and Mexico roughly four years.
The Eurozone will take a year longer than the United States to recover
As for the Eurozone after the 2020 disaster, down 6.7%, it is expected to end this year with growth of 4.3% and 4.4% in 2022. According to the OECD forecasts, It will take Spain three and a half years to return to its pre-crisis level.
According to Lawrence Boone, chief economist at the Organization for Economic Cooperation and Development, the eurozone needs investment support
“Based on current policies, the Eurozone will take about a year longer than the US to return to its pre-pandemic level. Political decisions will still be very important. There was an emergency phase of the crisis, in the person who was very supportive of everyone and I think it was the right thing to do. We are now in a kind of transition phase, where support needs to be more targeted and focused on investment“Explica Lawrence Boone.
“Governments must invest in education and health.”
The chief economist of the Organization for Economic Cooperation and Development stresses that this recovery is a test for governments that must reallocate their budgets to put social policies in the foreground.
“The transition must also be exceptional. It’s about helping downsized people and companies, but also It’s about investing in quality. Governments must improve health and education systems. They also have to invest in climate and digitization. This presents a challenge for governments, which must step up and review the way they view their budget policies to ensure they can meet all of these challenges in the future. “.