Western economies recovering faster than expected from Covid, says IMF

SourceThe Guardian
CountryMiddle east

Stronger recoveries from the Covid-19 pandemic in the US, the UK and other rich western countries will result in faster than expected growth for the global economy this year, the International Monetary Fund has predicted.The Washington-based IMF’s half-yearly World Economic Outlook (WEO) said successful vaccine programmes, businesses adapting to the challenges of lockdown and Joe Biden’s $1.9tn (£1.4tn) stimulus package had been key factors in the upgrade.After contracting by 3.3% in 2020, the IMF said the world economy would now grow by 6% in 2021 and a further 4.4% in 2022. The last WEO in October had predicted expansion of 5.2% in 2021 and 4.2% in 2022. The October forecast for 2021 was later upgraded to 5.5% growth in January this year.The IMF said governments had spent $16tn in their attempts to mitigate the economic damage caused by the virus and that without the unprecedented policy response the global economy would have contracted by 10% last year.The WEO warned that the recovery would be uneven, with faster progress in rich countries further advanced with their vaccine programmes and with the financial firepower to pay for stimulus packages. Inequality would increase both between and within countries, the WEO said.Of the advanced ...read more...