The Strategist

IMF: Global economic recovery is threatened

07/29/2021 - 04:04

Countries around the world have been split in two because of unequal access to coronavirus vaccines, the International Monetary Fund (IMF) pointed out in its World Economic Outlook on 27 July.

Some states will continue to face outbreaks and high mortality. Others can be counted on to continue to normalise, which is true of almost all developed economies. However, recovery has also been threatened in those countries with few new cases now, as the virus continues to circulate in the rest of the world, the IMF stressed.

The fund expects the global economy to show six per cent growth in 2021 and 4.9 per cent in 2022. The overall outlook for this year remained unchanged from previous IMF estimates, but for individual countries it was revised. For example, estimates for emerging markets in Asia have changed for the worse and for developed economies - for the better, reflecting developments in the pandemic. 

The immediate 0.5 percent improvement in the 2022 forecast is mainly due to the outlook for developed countries, especially the USA, reflecting the expected measures of additional fiscal support in the second half of 2021 and improvements in health indicators in this group of countries.