OECD raises global outlook, cuts view on Japan

The Organization for Economic Co-operation and Development has revised upward this year's projection for global economic growth. But it cut its outlook for Japan, citing a slow vaccine rollout and a resurgence of infections.

The OECD released its latest forecast on Monday. It expects the global economy to expand by 5.8 percent this year. That's up from 5.6 percent forecast in March.

OECD Chief Economist Laurence Boone said" The prospects for the global economy have improved considerably in recent months, and the outlook is brightening. So we have revised up our growth projection for 2021 to the highest growth rate since 1973."

The report said the steady vaccine rollout in advanced economies is starting to allow more close-contact activities that had been held back by anti-virus measures.

The US economy is expected to grow 6.9 percent. That is up from a previous projection of 6.5 percent.

China's is predicted to grow 8.5 percent, up from 7.8 percent.

But the figure for Japan was downgraded to 2.6 percent from 2.7 percent. The OECD says the reintroduction of restrictions early this year dented prospects.

It also says a stronger recovery is possible with success in reducing transmissions and progress in vaccinations.

But it warned that any recovery could be undermined by a continued spread of infections.

That could disrupt the Olympic and Paralympic Games in Tokyo, further damaging the recovery.