IMF Upgrades Global Growth to 6% in 2021

The International Monetary Fund (IMF) expected on Wednesday that the global economy will achieve a higher-than-expected recovery during the current and next two years, driven by strong growth in the United States, as the Fund expects the global economy to grow by 6% in 2021 and 4.4% in 2022.

In the latest report on the global economic prospects, the Fund also expected growth in the U.S. to reach 6.4% for 2021, 3.5% for 2022, and in the euro area, the International Monetary Fund slightly increased its growth forecast to 4.4% in 2021.

As for  China, the IMF has increased its forecast for growth in the year 2021 to 8.4%, knowing that it is the only big economy that achieved positive growth last year.

"Despite the uncertainty about the pandemic, we can increasingly see a way out of the health and economic crisis," said the fund's chief economist Gita Gopinath.

The Fund has warned that global prospects are still surrounded by a great deal of uncertainty one year after the pandemic's outbreak, noting that the emergence of new mutated virus strains and the accumulation of human losses is the biggest concern, yet, as vaccination coverage increases, the sense of optimism grows.

Meantime, Gopinath clarified that governments face widespread tax evasion, expressing her support for imposing a minimum global tax on companies, following an invitation made by U.S. President Joe Biden in this regard.