The International Monetary Fund believes global prospects are ‘diverging dangerously’ due to differences and deficiencies in post-pandemic recovery, reports Bloomberg Quint. With the world’s economy projected to grow by 6.9% this year, the quickest since the 1960s, differences in vaccine rollout and fiscal support will hold back gains.
The U.S has pumped trillions of budgetary stimulus while China is building on its success of last year’s economic aid to counter the coronavirus pandemic.
The IMF sees emerging markets and some countries in the euros, where France and Italy have extended restrictions to contain the virus as laggards in global recovery.
Amid the inadequacy of vaccines, IMF cites job losses and rising poverty as key reasons why global recovery looks lopsided.
The global body says it could take years for the world to join the U.S and China in fully recovering from the pandemic.
The U.S is expected to use this week’s virtual meetings with the IMF and World Bank to argue that it is not time for countries to pull back on assisting their economies.
IMF projects the world’s output will be 3% lower than was estimated before the pandemic, with countries reliant on tourism and services suffering the most.
