Business & Investment

IMF: Recovery from coronavirus is vulnerable and uneven

The global economy is recovering from a coronavirus pandemic, but the International Monetary Fund warning of recovery is uneven and vulnerable

  • Global Watchdog raises expectations of economic growth after successful deployment of the Covid vaccine in countries such as the United Kingdom and the United States.
  • The fund also declares that President Biden’s £ 1.4 trillion U.S. economic stimulus has boosted global growth prospects.
  • However, it warns that stagnant vaccination programs and rising infection rates are hampering recovery in parts of the world, including Europe.

The global economy is recovering from a pandemic, but the recovery is uneven and fragile, and the International Monetary Fund warns this week.

With the Spring Conference on Videolink, Global Watchdog raises expectations of economic growth after successful deployment of the Covid vaccine in countries such as the United Kingdom and the United States.

The fund also declares that President Biden’s £ 1.4 trillion US economic stimulus has boosted the outlook for global growth.

Survive the Storm: The IMF warns that stagnant vaccination programs and rising infection rates are hampering recovery in parts of the world

However, it warns that stagnant vaccination programs and rising infection rates are hampering recovery in parts of the world, including Europe. And it will express concern that developing countries are being left behind in vaccination programs.

Prior to last week’s meeting, IMF Managing Director Cristalinage Orgieva said: Millions of people are benefiting from the vaccine. But there are also dangers.

“Economic fate is diverging. Vaccines are not available everywhere. Too many people are facing increasing unemployment and poverty.

“Too many countries are lagging behind. Don’t be vigilant.”

In the latest economic update in January, the IMF forecasts global economic growth of 5.5% this year and 4.2% in 2022. These may be upgraded when the fund announces its global economic outlook tomorrow.

The IMF also plans to raise its US growth forecast from 5.1% this year to 2.5% next year. Biden’s stimulus, equivalent to 8.5% of national income, is expected to supercharge the US economy.

Boris Johnson and Rishi Sunak look forward to good news about the UK outlook. In January, the IMF forecasts the UK to grow this year at 4.5% and next year at 5%. The UK Budget Responsibility Department is not confident about this year and is forecasting 4% growth, but is forecasting 7.3% growth in 2022.

And European leaders will crave to hear the IMF’s verdict on the continent. “One of the biggest dangers is high uncertainty,” said Georgieva.

“It relies heavily on the pandemic pathway. Pandemics are shaped by uneven developments in vaccination and new strains of virus that are hampering growth, especially in Europe and Latin America.”

Advertising

IMF: Recovery from coronavirus is vulnerable and uneven

https://www.dailymail.co.uk/money/markets/article-9435347/IMF-Recovery-coronavirus-fragile-uneven.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 IMF: Recovery from coronavirus is vulnerable and uneven

Back to top button