The International Monetary Fund expected that the global economy will record a strong recovery this year, despite the heavy damage caused by the emerging corona virus crisis, as the cumulative losses in production between 2020 and 2025, which are expected to reach 22 trillion dollars, compared to the expectations before Pandemic, still large.
The International Monetary Fund revealed that optimism that the new vaccines will put an end to the epidemic and allow the resumption of economic activity, in addition to stimulus programs in large economies, has boosted growth expectations this year, reaching 5.5 percent. Indicating that these developments indicate a stronger starting point for 2021-2022 forecasts in the world.
The IMF expects growth in the United States to be two percentage points higher than previous expectations at 5.5 percent, at its strongest rate since 1984. On the other hand, the Fund expected China to record a growth of 8.8 percent. The Fund estimated that the future is witnessing an "exceptional uncertainty", and more work is required to prevent permanent damage.
The Fund revealed that the stimulus package proposed by US President Joe Biden, amounting to 1.9 trillion dollars, could boost the economic output of the United States by 5 percent over the next three years. Indicating that the measures in the proposed package may add up to 1.5 percent to the growth of the US economy in 2021. The IMF expects the world's largest economy to grow by 5.1 percent this year after a 3.4 percent contraction in 2020.
Source (Al-Arabiya.net website, Edited)
