The December OECD forecasts for the recovery following the Covid-19 crisis are more optimistic than those in November. According to the OECD, the world economy will grow by 4.2% in 2021, after a year of deep recession that is, ultimately, expected to reach -4.2%. The projections are based on a series of developments in recent months, including information campaigns and research on new vaccines, health policies, and strong support for economies through fiscal measures. Eurozone economies are expected to recover at a slightly lower rate, with the economies of France growing by 2%, Germany by 2.8%, Italy by 4.2%, Spain by 5% and Greece by 0.9%.

Although the 2021 forecast remains rather pessimistic for Greece, the OECD believes that the Greek economy’s recovery will speed up in 2022, reaching 6.6%, well above the Eurozone average which will remain at similar levels (3.3%) as in 2021. As the OECD notes, delays in the availability of the vaccine as well as difficulties in managing pandemic outbreaks could undermine the projections.