OECD Secretary-General: "Delta Variant Poses Greatest Threat to Global Economic Recovery"

Matthias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development (OECD)
[Photo by EPA Yonhap News]

[Asia Economy Reporter Kim Suhwan] Mathias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development (OECD), warned that the global economic recovery could be delayed due to the resurgence of COVID-19 caused by the Delta variant.

In an interview with CNBC on the 8th (local time), Secretary-General Cormann said, "The resurgence of COVID-19 is one of the biggest threats to the global economic recovery," adding, "The risk from variant viruses resistant to existing vaccines is increasing."

Secretary-General Cormann also emphasized the need for vaccine support for countries with low vaccination rates, stating that economic recovery could be further delayed in these countries.

He stressed, "We must mobilize all means to ensure that everyone worldwide can receive the vaccine," and added, "Especially, advanced countries have a responsibility to support vaccines to other countries. This is not just a matter of donation but necessary for the safety of their own citizens."

He also added, "(Providing vaccine supplies to other countries) is an essential measure to guarantee the economic recovery of countries around the world."

Secretary-General Cormann's warning is interpreted to mean that the recent surge in the Delta variant virus and signs of COVID-19 resurgence could affect the optimistic economic growth forecasts announced by various countries.

On the 1st, the International Monetary Fund (IMF) significantly raised its forecast for the U.S. economic growth rate this year from the April estimate of 4.6% to 7.0%. This was a result of the expected economic rebound due to the expansion of COVID-19 vaccinations, but if economic lockdown measures are implemented due to the spread of the Delta variant, it is analyzed that this economic growth forecast could be adversely affected.

In particular, health authorities in countries such as the U.S. and Germany recently announced that infections from the Delta variant have exceeded 50% of daily new confirmed cases, raising concerns that the Delta variant has already become the dominant strain. Accordingly, some countries, including Israel, are strengthening quarantine measures again, such as reinstating mandatory mask-wearing.

The French Minister of Finance also warned in an interview with a media outlet on the 6th that "the resurgence of COVID-19 due to the Delta variant is the biggest factor threatening economic recovery."

This content was produced with the assistance of AI translation services.