WASHINGTON (AP) – The spread of COVID-19 vaccines will foster a stronger global economic recovery in 2021, the International Monetary Fund said on Tuesday.
After falling 3.5% in 2020, the worst year since World War II, the global economy will grow 5.5% this year, the 190-country lending organization predicted. The new figure for 2021 is an upgrade from the 5.2% expansion predicted by the IMF in October and would mark the fastest year of global growth since the 2010 financial crisis.
Vaccines are expected to contain the spread of the virus and allow governments around the world to ease lockdowns and encourage a return to normal economic activity. But the IMF has also said economies around the world will need the support of their governments to offset the damage caused by the pandemic and warns that coronavirus mutations could cloud the outlook for global health and economic growth.
In an update to its World Economic Outlook, the IMF said it expects the U.S. economy – the world’s largest – to grow 5.1% this year after s ‘to collapse 3.4% in 2020. China No. 2 is expected to post growth of 8.1% after its withdrawal. an increase of 2.3% in 2020.
The 19 European countries that share the euro will collectively register 4.2% growth this year after seeing economic output crater by 7.2% in 2020, according to the IMF. The Japanese economy is expected to grow 3.1%, reversing a 5.1% decline in 2020.
The IMF has significantly modernized India, thanks to a faster than expected recovery of its factories and farms: the Indian economy is expected to grow by 11.5% in 2021, the fastest among the major economies, and a recovery compared to the 8% drop in 2020.
The agency also expects global trade to rebound this year: growing 8.1% after falling 9.6% last year.
- According to the source IMF: Vaccines will power 5.5% global economic growth in 2021.
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