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IMF upgrades global economic growth forecast to 6% on Covid vaccine hopes

Screen Shot 2021-04-07 at 10.22.27 AM

Source: Ed Stoddard, Business Maverick, 6 April 2021, photo credit: Daily Advent

Estimate of the size of the worldwide 2020 contraction brought on by the pandemic and the lockdowns to contain its spread has also been whittled down to 3.3% from 4.4%.

The International Monetary Fund (IMF) on Tuesday raised its forecast for global economic growth, citing the “vaccine powered” recovery and additional fiscal stimulus. The Washington-based lender also marginally raised its projection for South African growth this year to 3.1% from 3% previously.

The IMF now sees global growth in 2021 of 6% compared with 5.2% in its previous forecast in October. Its estimate of the size of the worldwide 2020 contraction brought on by the pandemic and the lockdowns to contain its spread has also been whittled down to 3.3% from 4.4%, the fund said in its latest World Economic Outlook.

“The upward revision reflects additional fiscal support in a few large economies, the anticipated vaccine-powered recovery in the second half of 2021, and continued adaptation of economic activity to subdued mobility,” the fund said.

But it was quick to add a note of caution.
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