OECD amends its forecast for global economic recovery

How soon will the global economy recover from COVID-19, and in what shape will that occur?

The OECD has slashed its forecast for Australian GDP growth in 2021, saying shutdowns associated with Victoria’s second wave of COVID-19 will drive a much weaker than expected rebound.

In its latest economic outlook, the OECD upgraded its growth forecast for Australia in 2020, saying real GDP would contract by 4.1 per cent, or by 0.9 per cent less than it forecast in June. globe-economy-growth-health-world-heart-decline-map

The international body sharply downgraded Australia’s projected growth for 2021, saying it now expected real GDP to grow by 2.5 per cent, versus a previous estimate of 4.1 per cent.

And not surprisingly the shutdowns associated with Victoria’s second wave of COVID-19 will slow down our rebound.

The OECD reports that after collapsing in the first half of the year, world economic output recovered swiftly following the easing of measures to contain the COVID-19 pandemic and the initial re-opening of businesses.

Policymakers reacted rapidly and massively to buffer the initial blow to incomes and jobs.

But the pace of recovery has lost momentum over the last few months.

Restoring confidence will be crucial to how successfully economies can recover, and for this we need to learn to safely live with the virus according to the OECD.

 

The hit to the global economy this year will not be as severe as predicted in June: a 4.5% contraction in world GDP compared to the 6% previously forecast.

“The drop in global output in 2020 is smaller than expected, though still unprecedented in recent history.

In effect, many major advanced economies could have lost the equivalent of 4-5 years of per capita real income growth by 2021.”

Of course the strength of next year’s global rebound will depend heavily on health outcomes.

The OECD update represented a turnaround from the June outlook, which included a marked improvement in Australia’s economic prospects, but this is well below the 4 per cent forecast from the Reserve Bank of Australia’s August economic outlook.

“The localised lockdowns, border closures and new restrictions being imposed in some countries to tackle renewed virus outbreaks are likely to have contributed to the recent moderation of the recovery in some countries, such as Australia,” the report said.

OECD amends its forecast for global economic recovery

Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on

Metropole

If you’re wondering what will happen to property in 2020–2021 you are not alone.

You can trust the team at Metropole to provide you with direction, guidance and results.

In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.

If you’re looking at buying your next home or investment property here’s 4 ways we can help you:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now!  This will give you direction, results and more certainty. Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.

icon-podcast-large

Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Michael Yardney

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au


'OECD amends its forecast for global economic recovery' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts