Joe Biden’s $1.9 trillion stimulus plan isn’t just boosting the U.S., it’s also helping economies around the world. The latest forecasts from the OECD included huge upgrades for 2021, thanks in part to spillovers from America’s big spending program. Yet, empowering women to participate fully in the modern economy would give global growth an even bigger push, according to Bloomberg Economics. Meanwhile, U.S. consumer inflation remained limited in February ahead of a projected pickup in coming months and China’s economic recovery showed signs of progress after the Lunar New Year.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
World
Stronger Growth
The OECD expects global GDP to expand 5.6% this year
Source: Organization for Economic Cooperation and Development
A U.S. recovery turbocharged by President Joe Biden’s stimulus package will help power a faster than expected global economic upswing that risks leaving Europe behind, according to OECD forecasts.
Empower Women, Boost Growth
Ending gender inequality would help lift global GDP by 2050*
Source: Bloomberg Economics
Note: *National convergence assumes that 25-64 year old female labor-force participation and schooling will converge to that of male counterparts within each country by 2050. Graphic shows GDP relative to baseline of persistent inequality
Bloomberg Economics has estimated the boost to output if women’s education and employment levels converge with that of men in the same country. Achieving that ambitious goal could add about $20 trillion to world GDP in 2050 relative to a baseline scenario of persistent gender inequality.
Who Runs the Show
Cormann to become the latest secretary general of the OECD
Source: Organization for Economic Cooperation and Development
Note: Data for 1948-1961 are for the Organization for European Economic Cooperation, which was superseded by the OECD, a worldwide body
The OECD lost a chance to lead by example: Australia’s Mathias Cormann was selected to head the organization, defeating Sweden’s Cecilia Malmstrom in a closely contested race.
U.S.
Prices charged by service providers, those hit hardest by the pandemic, rose in February at the slowest pace in a decade. Combined with a slight moderation in goods inflation during the month, the government’s core consumer price index posted a smaller-than-expected gain from a year earlier. In January, prices of goods climbed the most since 2012.
Consumer sentiment improved in early March by more than forecast, reaching a one-year high as more vaccinations and fiscal relief boosted optimism in the economic outlook.
Europe
The U.K.’s first batch of official trade data since leaving the European Union highlights the early damage done to the flow of goods by Brexit.