OECD revises 2021 global GDP growth estimate to 5.6% from 1.4% in December

The Organisation for Economic Co-operation and Development (OECD) said on Monday it expects the global GDP to grow by 5.6% in 2021, compared to 1.4% in December's report, per Reuters.

Additional takeaways

"OECD sees 2021 US GDP growth of 6.5% (+3.3), 4.0% in 2022 (+0.5)."

"OECD sees 2021 Chinese GDP growth of 7.8% (-0.2), 4.9% in 2022 (unchanged)."

"OECD sees 2021 euro area GDP growth of 3.9% (+0.3), 3.8 in 2022 (+0.5)."

"OECD sees 2021 Japanese GDP growth of 2.7% (+0.4), 1.8% in 2022 (+0.3)."

"OECD sees 2021 UK gdp growth of 5.1% (+0.9), 4.7 in 2022 (+0.6)."

"Global GDP should be above pre-pandemic level by mid-2021, although this is not the case in all countries."

"New US stimulus package could raise US output by around 3-4% in the first full year."

"OECD estimates US package could raise output by 0.5-1 percentage point in Canada and Mexico, 0.25-0.5 in the euro area and China."

"OECD estimates us package will boost us employment by 2.25-3 mln by end 2021, increase inflation by 0.75% per year."

Market reaction

The market mood remains upbeat following this report and the S&P 500 Futures were up around 1% on a daily basis.