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IMF increases 2021 global growth forecast to 5.5 percent

The International Monetary Fund (IMF) increased its projections for the expansion of the global economy, saying it now sees the world gross domestic product (GDP) increasing by 5.5 percent which compares to previous expectations of an expansion of 5.2 percent.

NEWS IN ENGLISH 26.01.2021, 16:40
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IMF increases 2021 global growth forecast to 5.5 percent
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The increase comes on renewed hopes of a global recovery as Covid-19 vaccinations start and expectations of more stimulus in large economies, the IMF noted. Meanwhile, growth in 2022 is seen at 4.2 percent while the global economic contraction in 2020 is now estimated at 3.5 percent.


Growth in advanced economies in 2021 is forecast to come in at 4.3 percent following a contraction of 4.9 percent last year. 


According to the estimates the United States GDP fell 3.4 percent in 2020 and will increase to a growth of 5.1 percent this year and 2.5 percent in 2022. Meanwhile, emerging markets and developing economies are expected to see a growth of 6.3 percent in 2021, led by India whose GDP is forecast to jump 11.5 percent, and China, whose economy is expected to expand by 8.1 percent. 


The IMF sees the two countries' economies growing by 6.8 percent and 5.6 percent, respectively, in 2022. Last year, India's GDP contracted 8.0 percent, but China's grew 2.3 percent, the IMF stressed.
 

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