Paris — A rapid rebound in global growth is on track but it is too early for governments and central banks to withdraw exceptional support for their economies despite a spike in inflation, the Organisation for Economic Cooperation and Development said on Tuesday in an update of its economic outlook.
The Paris-based policy forum said global growth would then ease to 4.5% in 2022, up 0.1 percentage point from its previous forecast in late May. Most central bankers and policymakers have concluded for now that the current spike is a fleeting reaction to the recovery rather than the prelude to a sustained period of higher inflation, though the debate is far from closed.
It urged governments to remain flexible with their financial support for their economies and avoid withdrawing it as long as the short-term outlook remained hazy.
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