OECD trims global growth forecast to 5.7% for 2021 from 5.8% in May

In an update of its economic outlook, the Organisation for Economic Co-operation and Development (OECD) on Tuesday trimmed the global growth forecast to 5.7% for 2021 from 5.8% in May.

Key highlights:

• Sees UK growth of 6.7% in 2021 (down from 7.2% in May) and 5.2% in 2022 (5.5% in May).
• China 2021 GDP growth forecast: 8.5% (unchanged); 2022: 5.8% (unchanged).
• Sees Japanese growth of 2.5% in 2021 (vs May forecast of 2.6%), 2.1% in 2022 (2.0% in May).
• OECD hikes 2021, 2022 inflation outlook for US, Eurozone, UK.
• Sees US growth of 6.0% in 2021 (vs May forecast of 6.9%), 3.9% in 2022 (3.6% in May).
• Raises EZ economic growth forecast to 5.3% from 4.3%; 2022: 4.6% (from 4.4%).

Market reaction

The report did little to influence the prevalent risk-on environment. In fact, the S&P 500 future was last seen holding with strong gains of nearly 1% for the day.