Reuters reports that the Organisation for Economic Cooperation and Development (OECD) said that the outlook for the global economy is improving as vaccines emerge and a Chinese-led recovery takes hold.

The global economy will grow 4.2% next year and ease to 3.7% in 2022, after shrinking 4.2% this year, the OECD said in its latest Economic Outlook.

"We're not out of the woods. We're still in the midst of a pandemic crisis, which means that policy still has a lot to do," said OECD chief economist Laurence Boone.

Overall global gross domestic product will return to pre-crisis levels by the end of 2021, led by a strong recovery in China, the OECD said.

But that masked wide variations among countries, with output in many economies expected to remain about 5% below pre-crisis levels in 2022.

China will be the only country covered by the OECD to see any growth at all this year, at 1.8%, unchanged from the last forecast in September. It will gain speed to 8% in 2021 - also unchanged - before easing to 4.9% in 2022.

The United States and Europe are expected to contribute less to the recovery than their weight in the global economy.