IMF to raise global growth forecasts on U.S. stimulus and Covid vaccination progress
The International Monetary Fund is even more optimistic about global growth this year, but has insisted there is still “high uncertainty” ahead.
Back in January, the IMF struck an upbeat tone in its global economic forecasts, estimating a GDP (gross domestic product) rate of 5.5% this year. At the time, this represented a 0.3 percentage point increase from previous forecasts.
However, U.S. President Joe Biden’s massive fiscal plan and an improved vaccine rollout over the past three months have made the IMF even more confident about the rest of the year.
The new forecasts will be announced on Tuesday, when the Fund releases its latest World Economic Outlook.
However, the IMF has warned that one of the risks to the outlook is the high uncertainty provoked by the pandemic, including potential new variants.
At the same time, it has noted that there is an uneven economic recovery taking place.
As a result, the IMF is advising countries to ramp up vaccine production, distribution and deployment. It also advised they keep loose fiscal policies and invest in climate-friendly policies.
Reference: CNBC
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