IMF: Global Economy to Grow by 6% in 2021

After the major economic challenges the world faced last year due to the Covid-19 pandemic, the International Monetary Fund (IMF) announced that the global economy recovery will be greater than expected in the years 2021 and 2022, driven by strong growth in the United States.

The IMF is currently taking into account the global economy growth by 6% this year and 4.4% next year.

In the US, which has stepped up economic recovery plans, growth expectations are 6.4% for 2021 and 3.5% for 2022.

“Despite the uncertainty about the pandemic situation, we can increasingly see a way out of the health and economic crisis,” Gita Gopinath, chief economist at the IMF, noted.

IMF has warned that global prospects are still surrounded by a great deal of uncertainty one year after the start of the pandemic, noting that what causes concern is the emergence of the new mutated virus strains and the accumulation of deaths as a result of the pandemic, at a time when vaccine roll-out increases, increasing the upbeat sentiment.

In the euro area, the International Monetary Fund slightly increased its growth forecast to 4.4% in 2021, exceeding these expectations of 0.2 percentage points published in January. While the gap remains wide with the United States.

In China, the IMF has increased its forecast for growth in 2021 by 8.4% this year; the only large economy that achieved positive growth last year.

Gopinath also clarified that governments face widespread tax evasion, the International Monetary Fund has expressed its support for imposing a minimum global tax on companies, following a call made by US President Joe Biden in this regard.