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The US economy has shown the fastest pace and increased since the last four decades due to unprecedented levels of government stimulus and increased vaccination rates. On Monday, the Organization of Economic Cooperation and Development said that US gross domestic product would grow 6.9% in 2021. It was considered the biggest increase and the broadest measure of goods and services produced by a nation since 1984. However, GDP contracted at a 3.5% annualized rate in 2020 as the economy came to a near standstill to slow the spread of COVID-19. It has infected more than 33 million Americans and killed over 594,000. The latest projections marked a more encouraging outlook from earlier this year. The OECD predicted in March that the US economy would increase by 6.5%, up from the December forecast of 3.5%.

The increment represents the faster distribution of the vaccine and the $1.9 trillion relief plan passed by Democrats in March. Point to be noted that the relief plan is also known as the American Rescue Plan. The plan has sent a $1,400 stimulus check to most adults, expanded unemployment benefits by $300 a week, and allocated $350 billion to state and local governments. The report of OECD also said, “Substantial additional fiscal stimulus and a rapid vaccination campaign have given a boost to the economic recovery”. The OECD group represents 38 countries and predicted that the global economy would grow 5.8% in 2021. The group also warned that the recovery could be uneven and living standards are expected to remain well below pre-crisis levels by the end of 2022.

The OECD chief economist, Laurence Boone issued a statement and said, “It is very disturbing that not enough vaccines are reaching emerging and low-income economies. This is exposing these economies to a fundamental threat because they have less policy capacity to support activity than advanced economies. The possibility of a renewed coronavirus threat could result in increases in acute poverty and the possibility of sovereign funding issues if financial markets become concerned. More broadly, as long as the vast majority of the global population is not vaccinated, all of us remain vulnerable to the emergence of new variants. Confidence could be seriously eroded by further lockdowns and a stop-and-go of economic activities”.