Daily Management Review

IMF: Global economy is growing faster


The International Monetary Fund (IMF) said that the global economy is recovering faster than previously forecast. This was stated by First Deputy Head of the IMF Geoffrey Okamoto.

He stressed that this recovery is uneven. There are alarming signs that the gap between developed and developing countries is growing.

At the same time, serious risks still remain in terms of the economy. In particular, the risk of the spread of new strains of coronavirus.

"In January we projected global economic growth of 5.5% in 2021. However, there are prospects for a faster recovery thanks to additional fiscal stimulus," he said, adding that this is especially true for the US situation due to the prospect of more vaccination.

Okamoto believes the global economic recovery has been "incomplete and uneven". This situation is due to the fact that "despite a faster-than-expected recovery in the second half of 2020, most countries' GDP remains significantly below pre-crisis levels".

In particular, while China has already largely completed its recovery and has been able to return to pre-crisis growth levels, outperforming all major economies in the world, beyond that "there are worrying signs that the gap between developed and developing economies is widening," the IMF representative stressed.

source: imf.org