WASHINGTON: Accelerated vaccinations and a flood of government spending, especially in the United States, have boosted the outlook for the global economy, but more must be done to prevent permanent scars, the IMF said yesterday. The International Monetary Fund’s World Economic Outlook now sees global growth of 6.0 percent this year after the contraction of 3.3 percent in 2020 caused by the COVID-19 pandemic – the worst peacetime downturn since the Great Depression a century before. Rapid government responses, including $16 trillion in public funds, prevented a much worse outcome, a collapse that could have been “at least three times as large”, IMF chief economist Gita Gopinath said. The United States, which deployed another $1.9 trillion last month, is expected to grow by 6.4 percent, among the fastest expansions in the world and 1.3 points higher than the January forecast. Meanwhile, China’s economy, one of few that grew last year, will expand 8.4 percent in 2021, the IMF said. The euro area...read more...