[ad_1]
The International Monetary Fund on Tuesday raised its forecast for world economic growth in 2021, saying that the slowdown caused by the coronavirus in 2020 would be almost a percentage point less severe than expected.
He said multiple vaccine approvals and the launch of vaccines in some countries in December had raised hopes for an eventual end to the pandemic that has now infected nearly 100 million people and claimed the lives of more than 2.1 million. all over the world.
But he warned that the global economy continues to face “exceptional uncertainty” and new waves of infections and variants of COVID-19 pose risks, and global activity will remain well below pre-COVID projections made a year ago.
About 90 million people are likely to fall below the extreme poverty line during 2020-2021, and the pandemic will wipe out the progress made in reducing poverty in the past two decades. Large numbers of people remained unemployed and underemployed in many countries, including the United States.
In its latest World Economic Outlook, the IMF forecast a global contraction of 3.5% in 2020, an improvement of 0.9 percentage points from the 4.4% fall forecast in October, reflecting stronger momentum. than expected in the second half of 2020.
He predicted global growth of 5.5% in 2021, an increase of 0.3 percentage points from the October forecast, citing expectations for a vaccine-driven rally later in the year and additional political support in the states. The United States, Japan and some other large economies.
He said the US economy, the world’s largest, was expected to grow by 5.1% in 2021, an upward revision of 2 percentage points attributed to the drag from strong momentum in the second half of 2020 and to the cumulative profit of an additional $ 900 billion in dollars. fiscal support approved in December.
The forecast would likely rise further if the United States Congress passes a $ 1.9 trillion aid package proposed by newly inaugurated President Joe Biden, economists say.
China’s economy is expected to expand by 8.1% in 2021 and 5.6% in 2022, compared to its October forecast of 8.2% and 5.8%, respectively, while China’s economy India will grow 11.5% in 2021, 2.7 percentage points higher than the October forecast. after a stronger than expected recovery in 2020.
The Fund said countries should continue to support their economies until activity returns to normal to limit the lingering damage from last year’s deep recession.
Low-income countries would need continued support through grants, low-interest loans and debt relief, and some countries may require debt restructuring, the IMF said.
Source: Reuters (report by Andrea Shalal; edited by Shri Navaratnam)
[ad_2]
