The International Monetary Fund is now expecting a more robust economic recovery in 2021 as COVID-19 vaccine rollouts get underway. However, it warns of ‘daunting challenges,’ given the different rates of administering shots worldwide. On Tuesday, April 6th, the group said it expects the world economy to grow by 6 per cent in 2021, up from its 5.5 per cent forecast in January.
Looking ahead, the global GDP (gross domestic product) for 2022 is seen increasing by 4.4 per cent, higher than an earlier estimate of 4.2 per cent. The latest round of fiscal stimulus in the U.S. and the vaccine being administered across the world have made the fund more confident about the global economy this year.
“Even with high uncertainty about the path of the pandemic, a way out of this health and economic crisis is increasingly visible,” Gita Gopinath, the IMF’s chief economist, said in the latest World Economic Outlook report.