The global economy is growing more strongly than anticipated a year ago but the recovery remains uneven, the Organisation for Economic Co-operation and Development said.
With the Covid-19 vaccination drive continuing and a gradual resumption of economic activity under way, the OECD estimated global growth of 5.7 per cent this year and 4.5 per cent in 2022.
The revised estimates mark a slight change from its May 2021 outlook of 5.8 per cent and 4.4 per cent, respectively, the Paris-based organisation said in its interim economic outlook report on Tuesday.
That compares with an International Monetary Fund global economic forecast of 6 per cent for this year and 4.9 per cent for 2022. The fund also warned of an uneven recovery in July and downgraded its growth outlook for emerging market and developing economies because of the unequal access to vaccines and the emergence of Covid-19 variants.
The global economy last year tipped into its deepest recession since the Great Depression of the 1930s. Governments and central banks globally have poured about $25 trillion in monetary and fiscal stimulus support since the onset of the pandemic to boost economies, strengthen banks and stabilise financial markets. But governments are still looking at increased fiscal deficits amid an uneven global economic recovery.
Extraordinary support from governments and central banks helped avoid the worst after the outbreak of Covid-19, the OECD said. However, countries are emerging from the pandemic with different challenges.
“The world is experiencing a strong recovery, thanks to decisive action taken by governments and central banks at the height of the crisis,” Mathias Cormann, secretary general of the OECD, said.
“But as we have seen with vaccine distribution, progress is uneven. Ensuring the recovery is sustained and widespread requires action on a number of fronts – from effective vaccination programmes across all countries to concerted public investment strategies to build for the future.”
Large differences in vaccination rates between countries are also contributing to the unevenness of the economic recovery. Renewed outbreaks of the virus are forcing some countries to restrict activities, resulting in bottlenecks and adding to supply shortages, the OECD said.
The world is experiencing a strong recovery, thanks to decisive action taken by governments and central banks at the height of the crisis
Mathias Cormann,
secretary general, OECD
“Even in countries where output or employment have recovered to their pre-pandemic levels, the recovery is incomplete, with jobs and incomes still short of the levels expected before the pandemic."
There is also a significant variation in the outlook for inflation, which has increased sharply in the US and some emerging market economies but remains relatively low in many other advanced economies, particularly in the euro area, according to OECD estimates.
However, these inflationary pressures should eventually fade, the OECD said.
A period of moderately higher inflation could be a good thing for many economies, Capital Economics said in a report on Tuesday.
But it added "there is a risk that policymakers become too accepting of the situation. We judge that the costs of higher inflation would start to outweigh the benefits in advanced economies if rates of more than about 5 per cent were sustained".
The OECD said moving forward, fiscal policies should remain flexible and government should avoid a premature withdrawal of support, while central banks should "communicate clearly about the likely sequencing of moves towards eventual policy normalisation”.
“To keep the recovery on track, stronger international efforts are needed to provide low-income countries with the resources to vaccinate their populations, both for their own and global benefits.”
The OECD also urged policy makers to continue supporting people and businesses hit hard by the pandemic to strengthen the global economic recovery.
Governments must "clearly set out fiscal and monetary policy plans for a sustainable recovery, increase public investment in health, digital and energy infrastructure and target the young, low-skilled and other vulnerable groups with help, education and training to get jobs", it said.
Specs
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'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Hydrogen: Market potential
Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.
"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.
Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.
The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Specs
Engine: Duel electric motors
Power: 659hp
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On sale: Available for pre-order now
Price: On request
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
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The specs
Engine: 3.0-litre six-cylinder turbo
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Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Results
5pm: Maiden (PA) Dh80,000 (Turf) 1,600m; Winner: Aahid Al Khalediah II, Pat Cosgrave (jockey), Helal Al Alawi (trainer)
5.30pm: Handicap (PA) Dh80,000 (T) 2,200m; Winner: Whistle, Harry Bentley, Abdallah Al Hammadi
6pm: Wathba Stallions Cup - Maiden (PA) Dh70,000 (T) 1,600m; Winner: Alsaied, Szczepan Mazur, Ibrahim Al Hadhrami
6.30pm: Emirates Fillies Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Mumayaza, Antonio Fresu, Eric Lemartinel
7pm: Emirates Colts Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Hameem, Adrie de Vries, Abdallah Al Hammadi
7.30pm: President’s Cup – Group 1 (PA) Dh2,500,000 (T) 2,200m; Winner: Somoud, Richard Mullen, Jean de Roualle
8pm: President’s Cup – Listed (TB) Dh380,000 (T) 1,400m; Winner: Medahim, Richard Mullen, Satish Seemar
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
