8/12, 12:50 PM (Source: TeleTrader)
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OPEC upgrades global GDP estimate for 2021, 2022

The Organization of the Petroleum Exporting Countries (OPEC) estimated on Thursday that global economic growth will hit 5.6% in 2021 and 4.2% in 2022, revising up its projections by 0.1 percentage point for each year.

"However, the forecast for global growth continues to be impacted by uncertainties, including the spread of COVID-19 variants and the pace of the vaccine rollout worldwide. In addition, sovereign debt levels in many regions, together with inflationary pressures and central bank responses, remain key factors that require close monitoring," the cartel said in its Monthly Oil Market Report for August 2021.

The United States 2021 GDP forecast was downgraded by 0.3 percentage points to 6.1%, while the 2022 estimate was raised by 0.5 percentage points to 4.1%. OPEC sees the Eurozone economic activity accelerating by 4.7% this year and by 3.8% in 2022. Both projections were higher than in the July report. Meanwhile, Japan's 2021 economy is still expected to grow 2.8% and China's GDP is projected to increase by 8.5% in the same year, in line with the previous forecast.

Baha Breaking the News (BBN) / MS