OECD SEES BOUNCE BACK IN ECONOMY BY END OF 2021

Vaccinations and financial support from governments will help the global economy recover to pre-pandemic levels by the end of 2021, a global economic watchdog has predicted, according to a report from Euronews.

But the forecast by the Organisation for Economic Cooperation and Development (OECD) also said the bounce back will be uneven in countries around the world and will depend heavily on the success of battling COVID-19.

"The contribution of Europe and North America to global growth will remain smaller than their weight in the world economy," OECD chief economist Laurence Boone said introducing a report published.

"China, which started recovering earlier, is projected to grow strongly, accounting for over one-third of world economic growth in 2021."

OECD secretary-general Angel Gurria said it was a sign of "hope" for the first time since the pandemic hit at the beginning of this year.

"The good news about vaccines has instilled a degree of optimism... but we are not out of the woods yet," he said.

The OECD predicts the global economy will shrink about 4.2% this year and rebound by the same rate in 2021.

It will grow by 3.7% the following year, the watchdog predicted.