Global economy expected to expand by 4% in 2021, recovery to be subdued: World Bank

Global economy expected to expand by 4% in 2021, recovery to be subdued: World Bank

The global economy is expected to expand by 4 percent in 2021, after a 4.3 percent contraction in 2020, on the back of the initial COVID-19 vaccine rollout globally in 2021, the World Bank said.

In its global economic prospects 2021 report, released on Tuesday, the World Bank expected recovery from pandemic to likely be subdued and may depress economic activity and incomes for a prolonged period, unless policy makers move decisively to control the pandemic's spread and implement investment-enhancing reforms.

The collapse in global economic activity in 2020 is estimated to have been slightly less severe than previously projected, mainly due to shallower contractions in advanced economies and a more robust recovery in China. In contrast, disruptions to activity in the majority of other emerging market and developing economies were more acute than expected, according to the report.

For Egypt, the report predicts economic growth to slow down to 2.7 percent in FY2020/2021, down from 3.6 percent in 2020, and to bounce back to 5.8 percent in 2022.

The report attributed the economic growth contraction in FY20202021 to the collapse in tourism, gas extractives and a slowdown in other key sectors such as manufacturing.

For the Middle