Reuters :
The global economy is set to grow by 4.7 per cent this year thanks to a stronger-than-expected recovery in the United States, a report by the UN Conference on Trade and Development (UNCTAD) said on Thursday, revising up its previous forecast of 4.3 per cent.
The upwards revision from its previous forecast made last September factors in an expected boost in US consumer spending on the back of progress distributing COVID-19 vaccines and a vast stimulus package, the report said.
“The global recovery that began in the third quarter of 2020 is expected to continue through 2021, albeit with a good deal of unevenness and unpredictability, reflecting epidemiological, policy and coordination uncertainties,” the report said.
Earlier this month, the OECD also revised higher its growth forecast for this year to 5.6 per cent from 4.2 per cent.
However, the 22-page UNCTAD report called ‘Out of the frying pan…into the fire?’ said COVID-19 will have lasting economic consequences that will require continued government support.
