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U.S. economic rebound could brighten Canada’s outlook, OECD says

Click to play video: 'COVID-19 vaccine rollout, U.S. stimulus boost global economic outlook: OECD' COVID-19 vaccine rollout, U.S. stimulus boost global economic outlook: OECD
WATCH: COVID-19 vaccine rollout, U.S. stimulus boost global economic outlook: OECD – Mar 9, 2021

The Organization for Economic Co-operation and Development says Canada could benefit from a faster economic rebound in the United States this year.

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The OECD’s new forecast says the world economy is bouncing back from the COVID-19 pandemic crisis faster than expected, thanks in part to successful coronavirus vaccines and U.S. stimulus efforts, but the improvements are uneven and joblessness remains a big concern.

Click to play video: 'COVID-19 tests balance between public health and economy' COVID-19 tests balance between public health and economy
COVID-19 tests balance between public health and economy – Feb 2, 2021

The OECD now expects global output to surpass pre-pandemic levels by the middle of this year, and raised its expectations for global gross domestic product growth this year and next year.

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But the organization warned of divergence in progress, with faster growth in China and the U.S. while some other regions are expected to continue struggling until the end of 2022.

Read more: Federal government rules out March budget as it evaluates lockdowns, new variants

The report says Canada’s economy is expected to grow 4.7 per cent this year, while the U.S. is slated to grow 6.5 per cent.

The organization says that strong fiscal support in the U.S. should lead to beneficial spillovers for other economies, particularly Canada and Mexico.

— with files from the Associated Press

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