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The International Monetary Fund (IMF) has projected 6 per cent economic growth in 2021 and 4.4 per cent in 2022. This is coming after an estimated contraction of -3.3 per cent in 2020. The Fund said the pandemic is yet to be defeated as virus cases are accelerating in many countries. In a statement, the IMF noted that China is projected to grow this year at 8.4 per cent.
According to it, whereas China’s economy had already returned to pre-pandemic GDP in 2020, many other countries are not expected to do so until 2023.
“We are now projecting a stronger recovery for the global economy compared with our January forecast, with growth projected to be 6 per cent in 2021 and 4.4 per cent in 2022 after an estimated historic contraction of -3.3 per cent in 2020. Nonetheless, the future presents daunting challenges. The pandemic is yet to be defeated and virus cases are accelerating in many countries.
“Recoveries are also diverging dangerously across and within countries as economies with slower vaccine roll out, more limited policy support and more reliant on tourism do less well. The upgrades in global growth for 2021 and 2022 are mainly due to upgrades for advanced economies, particularly to a sizable upgrade for the United States that is expected to grow at 6.4 percent this year.
