The spread of COVID-19 vaccines will power a stronger global economic recovery in 2021, the International Monetary Fund, IMF, forecast Tuesday.
After sinking 3.5 per cent in 2020, the worst year since World War II, the global economy will grow 5.5 per cent this year, the 190-country lending organisation predicted. The new figure for 2021 is an upgrade from the 5.2 per cent expansion the IMF forecast in October and would mark the fastest year of global growth since the 2010 snapback from the financial crisis.
The vaccines should contain the spread of the virus and allow governments around the world to ease lockdowns and encourage a return to normal economic activity. The world economy also got a boost from government stimulus programmes late last year in the United States and Japan.
But the IMF also says economies worldwide will need support from their governments to offset the damage from the pandemic and warns that coronavirus mutations could cloud the outlook for global health and economic growth.
“Much depends on the outcome of this race between a mutating virus and vaccines and the ability of policies to provide effective support until the pandemic ends,” IMF chief economist Gita Gopinath said at a press briefing Tuesday. “There remains tremendous uncertainty.’’
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