GDP growth projections point to convergence on pre-pandemic path

The rebound in economic activity in 2021 means output in most OECD countries has now surpassed levels in late-2019. The latest GDP growth projections show how they are now converging on their pre-pandemic path.

World GDP growth is projected to slow from +5.8% in 2021 to +4.4%; for the G20 countries they are +6.3% and +4.7%, respectively. This pattern between 2021 and 2022 is mirrored in countries such as France (+5.8% vs. +4.0%) and Japan (+2.6% vs. +2.0%), while other countries are expected to see growth moderately pick up, such as Germany (+3.3% vs. +4.4%) and Spain (+5.9% vs. +6.3%).

Labour market imbalances persist, while supply bottlenecks and the emergence of COVID variants have hampered outlook in the near term.

See also: A Balancing Act (Economic Outlook, December 2021)