IMF INCREASE GLOBAL ECONOMIC GROWTH FORECAST IN 2021

Despite raising its forecast for global economic growth, the IMF also warned that this outlook is also threatened by uncertainties related to the COVID-19 epidemic.

The International Monetary Fund (IMF) on January 26 raised its forecast for global economic growth in 2021 to 5.5%, citing optimism that a vaccine against acute respiratory infections COVID-19 will helping to control the pandemic and restore economic activity, while major economies are rolling out more stimulus packages for recovery.

The above figure, given in the IMF's latest World Economic Outlook (WEO), shows a significant improvement from the 3.5% contraction in 2020. However, the IMF also warned. This outlook is threatened by uncertainties related to the epidemic. The agency urges governments to continue to act to prevent lasting damage from the COVID-19 crisis.

The report said that the increase in the number of new COVID-19 cases in some countries and new variants of the SARS-CoV-2 virus has forced many countries to re-impose blockade orders and travel restrictions. Meanwhile, the logistical problems associated with vaccine distribution pose important problems to countries to deal with.

In addition, the IMF assessed that even if growth is recorded, many economies will not be able to recover to pre-pandemic levels this year.