Daily Management Review

World Bank expects record post-recession growth


The World Bank (WB) expects the global economy to grow by 5.6% in 2021. This will be the highest rate in 80 years since the recession.

Axel Drainville
Axel Drainville
According to the forecast, the US and China will account for more than a quarter of global growth in 2021, with the US contribution almost tripling from the 2015-2019 average. "Global growth in 2021 will be more robust than previously anticipated. 

Rapid progress in vaccination has contributed to an improved outlook in many countries; however, this is mainly in advanced economies," the WB data shows. By 2022, global production is expected to remain around 2% below pre-pandemic forecasts.

A May report by the Organisation for Economic Co-operation and Development (OECD) shows that the global economy is recovering from the coronavirus pandemic, but this is happening unevenly. The OECD expects "global output to grow by almost 6% this year, an impressive surge after a 31.2% contraction in 2020". Although much of the world will return to pre-crisis GDP levels, this is not enough, the report said.

According to experts from the Centre for Macroeconomic Analysis and Short-Term Forecasting, the next global economic crisis will occur in 2025-2026. 

source: worldbank.org