The International Monetary Fund (IMF) has expressed optimism that the world economy may grow by 5.5 percent in 2021, and 4.2 percent in 2022, despite exceptional uncertainties caused by the raging coronavirus pandemic.
By Abdourahmane Diallo
Support measures and vaccines should boost economic activity, says the global financial body.
The forecasts for 2021 by the Bretton wood institution are revised upwards by 0.3 points, compared to the previous forecasts as activity is expected to strengthen later in the year thanks to vaccines and the effect of additional support measures in a small number of large countries, says the IMF.
The strength of the recovery is expected to vary considerably from one country to another.
According to the IMF, this will depend mainly on their access to medical interventions, the effectiveness of support measures, their exposure to contagion between countries, and their structural characteristics on the eve of the crisis.
On this basis, the IMF calls on the authorities to provide effective support to the economy until recovery is firmly on track.
This is done by focusing on imperatives, notably raising production potential, ensuring participatory growth that benefits all, and accelerating the transition to a less carbon-dependent economy.
The International Monetary Fund stresses that strong multilateral cooperation is essential to bring the pandemic under control everywhere.
It calls for increased funding for the Covax mechanism to accelerate access to vaccines in all countries, ensure their universal distribution and facilitate access to affordable therapies for all.
The expected resumption of growth this year follows a heavy collapse in 2020 that had deleterious consequences for women, young people, the poor, workers in the informal economy, and those in sectors where contact is frequent, the IMF says.
The contraction of the global economy in 2020 is estimated at 3.5 percent or 0.9 points better than previous forecasts, due to stronger than expected momentum in the second semester of 2020.
ARD/cgd/fss/as/APA