The International Monetary Fund has warned of highly uncertain global prospects characterized by divergent recoveries from the pandemic. With global growth projected to hit 6% this year, IMF says recoveries are diverging across countries and sectors, reflecting variations in pandemic-induced disruptions and policy support.
IMF points out that the global outlook depends not just on vaccinations, but how effectively economic policies deployed under high uncertainty can limit lasting damage from the crisis.
Global growth is expected to moderate to 4.4% in 2022, with both projections for 2021 and 2021 being stronger that previously set in October 2020.
The upward growth revision for 2021 and 2020 reflects additional fiscal support in a few large economies and vaccine powered recovery in the second half of 2021.
Continued adaptation of economic activity to subdued mobility is also likely to spur growth.
The growth prospects are now expected to depend on the path of the pandemic, the effectiveness of policy support, and the evolution of financial conditions.
The projected 6% global growth in 2021 is a major boost from last year where the world contracted by 3.3% on pandemic-induced impacts.
