The International Monetary Fund (IMF) predicted on Tuesday that the spread of the Covid-19 vaccine will promote the global economic recovery in 2021.
The 190-country lending institution predicts that after a 3.5% decline in 2020 (the worst year since World War II), the global economy will grow by 5.5% this year. The new data for 2021 is larger than the 5.2% growth rate predicted by the IMF in October. This will be the fastest growing year in the world since the 2010 financial crisis.
The vaccine should curb the spread of the virus, allow governments around the world to clear lockdowns, and encourage the return to normal economic activities. At the end of last year, government stimulus plans in the United States and Japan also boosted the world economy.
But the IMF also said that global economies will need support from governments to offset the damage caused by the pandemic, and warned that the coronavirus mutation may have an impact on the prospects for global health and economic growth.