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Outgoing Secretary General of the Organisation for Economic Cooperation and Development (OECD) Angel Gurria delivers his speech during the handover ceremony at the OECD headquarters in Paris. (Ian Langsdon, Pool via AP)
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POLITICS:

OECD: U.S. economy to speed up to 6.9% in 2021, but inflation bites

Outgoing Secretary General of the Organisation for Economic Cooperation and Development (OECD) Angel Gurria delivers his speech during the handover ceremony at the OECD headquarters in Paris. (Ian Langsdon, Pool via AP)

OAN Newsroom
UPDATED 8:10 AM PT – Tuesday, June 1, 2021

An international economics monitor projected U.S. GDP growth to gain momentum in coming months. The Organisation for Economic Co-operation and Development shared insight on the post-pandemic economic outlook and warned of several anticipated issues.

During their ministerial council meeting on Monday, OECD Secretary General Angel Gurria reported the global economy was heading toward a level of growth that would have been unthinkable when the pandemic began.

“In a few countries including the United States,” Gurria explained. “We now see the level of GDP at the end of 2022 being higher than the one we had projected before the pandemic struck.”

The OECD 2021 economic outlook report predicts the American economy will grow 6.9 percent this year. Joe Biden’s spending plans and money printing by the Federal Reserve will be the driving factors behind this growth. However, investors are concerned elevated inflation could rise up to 5 percent and, as a result, erase the benefits of this growth for American households.

Despite their apparent support for the big spending plans proposed by the Biden administration, the OECD warned about the dangers that rising levels of national debt could create across the advanced economies this year. Economists are also expecting the economic growth to plateau in 2022, while the risks of inflation and currency devaluations may pose the threat of stagflation.

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POLITICS: OECD: U.S. economy to speed up to 6.9% in 2021, but inflation bites

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