April 07, 2021

Anna Murray 

The International Monetary Fund (IMF) posted on its World Economic Outlook with the latest forecast report entitled “MANAGING DIVERGENT RECOVERIES APRIL 2021”.  IMF expects a stronger world economic recovery in 2021 as COVID-19 vaccines continue rolling out.

According to the IMF report, the world economy has an estimated growth of 6% in 2021. Furthermore, global GDP for 2022 is projected to increase moderating to 4.4%. The IMF's chief economist Gita Gopinath comments on the forecasts saying the finish line of health and economic crisis is increasingly visible. She also pointed out 3 particular issues, including vaccine rollouts, the effective support from economic policy, and reliance on tourism, which will diverge for developing countries concerning their economic recoveries. Noteworthy among emerging and developing countries, China has restored most economic activities to their pre-pandemic level.

The IMF estimated 2021 economic growth of the US expanding by 6.4% and the UK forecast for growth of 5.3% and 5.1% in 2022. But IMF outlook warns the world economy of daunting challenges ahead and high uncertainty surrounding the development of the COVID pandemic, the effectiveness of vaccines, and the evolution of financial conditions. As a result, the IMF urged governments ought to focus on escaping the crisis by supporting the healthcare system financially first. In addition, IMP advised policymakers secondly ought to prevent long-term economic scarring from the crisis and increase public investment.
 

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