The International Monetary Fund (IMF) on July 21, 2021, estimated that the global growth for 2021 will be approximately 6 per cent, the same as forecast in April, but some countries are growing faster and other more slowly, said Kristalina Georgieva, Managing Director, IMF.
During an online event sponsored by the Peterson Institute for International Economics, Georgieva said that the economic recovery will be slow unless the COVID-19 vaccinations speed up. The goal of ending the COVID-19 pandemic by the end of 2022 is difficult to achieve at the current pace.
The IMF has predicted in April that the global growth in 2021 would hit 6 per cent, a rate that has not been registered since the 1970s, as the economy reopens.
However, Georgieva added that the rapid spread of the COVID-19 Delta variant and the relative lack of COVID-19 vaccines in developing countries is slowing the recovery of the economy.
The IMF will be releasing its next World Economic Outlook forecast update on July 27, but Georgieva said the IMF’s projected global growth rate for 2021 would remain at 6 per cent.
Difference in economic recovery across countries
•Some countries are growing faster and some slowly. The difference is primarily the speed and effectiveness of vaccinations and the availability of fiscal space to act, said Georgieva.
IMF-World Bank goal for countries
•Georgieva further said that IM-World Bank aimed to provide $50 billion to countries to speed up their COVID-19 vaccination rates.
•But now it is estimated that it will require more than 11 billion vaccine doses expected initially because booster shots may now be required and also to aid developing countries to cover the vaccine losses due to insufficient cold storage facilities.
About International Monetary Fund
•The International Monetary Fund (IMF) is an international financial institution of 190 countries that works towards fostering global monetary cooperation, securing financial stability, facilitating international trade, promoting high employment and sustainable economic growth, and reducing poverty in the world.
•Headquartered in Washington, IMF was established in July 1944 at the UN Bretton Woods Conference in the US.