The economy is recovering from the Corona crisis in many places. But the IMF has already warned of increasingly uneven growth. Corona vaccinations are the new key to a robust economy.
The International Monetary Fund (IMF) today presents a new forecast for global economic growth. Given the recovery from the economic consequences of the pandemic in industrialized countries, experts continue to expect a positive outlook.
When the calculations were last updated in April, the IMF raised its global growth forecast for this year to 6 percent and for the coming year to 4.4 percent. The IMF cited the successful vaccination campaigns and the measures adopted by many countries to support the economy and the labor market as reasons for the increase.
At the beginning of July, the IMF also raised its growth forecast for the USA for this year again, from 6.4 percent most recently to around 7 percent. That would be the strongest growth in a generation for the world’s largest economy, which would also boost the global economy. The IMF cited the massive economic stimulus package passed in March as one of the reasons for the stronger growth.
IMF chief economist Gita Gopinath will explain the new forecast. The recently comparatively high forecasts for the global economy are partly due to the fact that many countries experienced a recession of historic proportions in the previous year due to the Corona crisis and are now catching up again. According to the IMF, the global economy collapsed by 3.2 percent in 2020.
In April, however, the IMF warned that the global economy was developing increasingly unevenly: In the rich industrial countries, the economy was recovering at a rapid pace thanks to successful vaccination campaigns and economic stimulus packages. The developing and emerging countries, on the other hand, are finding it difficult to overcome the corona crisis because they do not have enough money to support the labor market and the economy. In addition, poorer countries are still at the end of the line when it comes to distributing vaccines. Many emerging countries are currently wrestling with a new corona wave because of the particularly contagious delta variant – which is likely to cloud the growth prospects again.
For China, the world’s second largest economy, which has the pandemic largely under control, the IMF forecast growth of 8.4 percent in April. For 2022, however, the IMF assumed a slight plus of 5.6 percent.
In April, the IMF forecast growth of 4.4 percent for the euro zone this year and 3.8 percent for 2022. In Germany, the gross domestic product (GDP) is expected to grow by 3.6 percent in the current year, and then by 3.4 percent in 2022.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
