Global Economic Outlook Gets More Optimistic
April 8, 2021
The global economy is expected to grow this year at the fastest pace in more than four decades as vaccine distribution and aggressive fiscal and monetary policy around the world drive the rebound from the pandemic.
The International Monetary Fund (IMF) now expects the world economy to grow by 6% this year, an increase from the 5.5% growth projection made in January. This would be the highest annual growth since the IMF began tracking world economic data in 1980. The rebound comes after the global economy contracted by an estimated 3.3% in 2020.
The recovery is being driven by the U.S. and China, the world’s biggest economies, along with other developed nations. A combination of stimulus spending and ultra-low interest rates has been the strategy for most advanced economies, with the U.S. alone spending nearly $5 trillion on stimulus measures.
These strategies are expected to help put the economy back on its feet, but it remains to be seen if they will generate long-term growth. The IMF sees global growth moderating to 4.4% in 2022.