Rosy Vaccine Outlook Brightens World Economic Forecast, But Recovery May Be Uneven

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The pending arrival of vaccines has brought «hope for a brighter future,» the OECD says. Here, workers from the Red Cross and the Federal Agency for Technical Relief help set up a center for COVID-19 vaccinations in a gymnasium in Eschwege, Germany.

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A full economic recovery will require more than a massive vaccine effort, the OECD says, citing the need for strategic health policies and government financial support for people and businesses laid low by months of shutdowns and safety restrictions.

«Small businesses, which have been badly hit by the crisis, need grants, not more debt, in order to survive,» the OECD says. «Grants can help them adapt, by exploiting digital technology for instance, and investing for the future.»

Delays in vaccination deployment, problems controlling new virus outbreaks and governments that fail to learn lessons from the first wave would weaken the recovery outlook, the OECD says.

The group’s report says governments should remain focused on four main policy areas to help minimize the pandemic’s financial impact: supporting children who have been forced out of their schools, undermining their future prospects; helping small businesses; strengthening public health policies; and supporting people who have lost their jobs and face reduced opportunities.