The Strategist

Bloomberg warns of "lopsided" global economic recovery

04/05/2021 - 06:33

The world's economies will be recovering quickly but unevenly in 2021, Bloomberg warns. Because of slow vaccination rates and tight monetary policy, some developing countries will lag behind the post-pandemic world leaders, the US and China.

The global economy will recover from the pandemic crisis at a record pace, with Bloomberg Economics predicting growth of 6.9% in 2021 - the highest in more than half a century. 

However, some countries may return to pre-pandemic levels sooner than others. The agency warns that, unlike the 2008 crisis, this time the recovery could be much more lopsided, including due to different rates of vaccination and countries' fiscal policies. 

Bloomberg Economics experts expect that in the first quarter of this year, the world economy will grow by 1.3%. In this case, the main driver of recovery will be the U.S., while the economies of France, Germany, Italy, Britain and Japan will continue to contract. A similar situation is observed among the developing countries: here Brazil, India and Russia are clearly behind China, which managed to pull ahead while overcoming the COVID-19, writes the agency.

Much will depend on how quickly countries manage to vaccinate large parts of their populations, says Bloomberg. According to its data, in the USA, almost a quarter of the population has received the vaccine, while in the European Union this figure has not yet reached even 10%, and in Mexico, Brazil and Russia - 6%.