Global Economy to Recover with Best Growth since 1970s: IMF

Developed economies are recovering from the pandemic at a better pace than previously estimated, according to the International Monetary Fund (IMF).

The unprecedented high levels of public expenditure to combat the coronavirus pandemic is pushing the global economy towards a strong recovery.

The IMF expects the global economy will grow by 6% in 2021, achieving the best growth rate since 1976, as it revised its growth forecast higher from 5.5%.

Due to the recently approved $1.9 trillion stimulus package in the United States, the IMF expects the U.S. economy will grow by 6.4%, which will be its best growth rate since 1984.

In addition, the world’s economy has contracted by 3.3% in 2020, a decline that came better than previously expected at 3.5%, according to the international institution.

Developed economies are expected to register a growth of 5.1%, compared with previous estimates of 4.3%.