• According to a recent forecast, the International Monetary Fund projects that the world economy will grow by 6.0% in 2021, followed by 4.4% in 2022. Their most previous estimates projected global growth to be 5.5% and 4.2%, respectively. The forecast was revised up to reflect an increase in vaccine rollout throughout the world and the $1.9T in fiscal stimulus recently injected into the US economy.
• The IMF forecasts that the US economy will grow by a lofty 6.4% in 2021, which would exceed its pre-pandemic growth potential for the year. In contrast, most other advanced nations are not likely to return to pre-covid growth levels until 2022 at the earliest, according to the report.
• IMF Chief Economist Gita Gopinath notes that the recent projections reflect diverging trends between advanced and developing nations. A combination of differing degrees of fiscal policy support, slower vaccine rollouts in under-resourced nations, and many countries’ reliance on tourism are likely to lead to an uneven global recovery.
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