WEO January 2021: Policy Support and Vaccines Expected to Lift Activity

Proshare

Wednesday, January 27, 2020 / 08:30 AM / by IMF / Header Image Credit: IMF


Proshare Nigeria Pvt. Ltd.


Although recent vaccine approvals have raised hopes of a turnaround in the pandemic later this year, renewed waves and new variants of the virus pose concerns for the outlook. Amid exceptional uncertainty, the global economy is projected to grow 5.5 percent in 2021 and 4.2 percent in 2022. The 2021 forecast is revised up 0.3 percentage point relative to the previous forecast, reflecting expectations of a vaccine-powered strengthening of activity later in the year and additional policy support in a few large economies.


The projected growth recovery this year follows a severe collapse in 2020 that has had acute adverse impacts on women, youth, the poor, the informally employed, and those who work in contact-intensive sectors. The global growth contraction for 2020 is estimated at -3.5 percent, 0.9 percentage point higher than projected in the previous forecast (reflecting stronger-than-expected momentum in the second half of 2020).


The strength of the recovery is projected to vary significantly across countries, depending on access to medical interventions, effectiveness of policy support, exposure to cross-country spillovers, and structural characteristics entering the crisis (Figure 1).

Proshare Nigeria Pvt. Ltd.

Policy actions should ensure effective support until the recovery is firmly underway, with an emphasis on advancing key imperatives of raising potential output, ensuring participatory growth that benefits all, and accelerating the transition to lower carbon dependence. As noted in the October 2020 World Economic Outlook (WEO), a green investment push coupled with initially moderate but steadily rising carbon prices would yield needed emissions reductions while supporting the recovery from the pandemic recession.


Strong multilateral cooperation is required to bring the pandemic under control everywhere. Such efforts include bolstering funding for the COVAX facility to accelerate access to vaccines for all countries, ensuring universal distribution of vaccines, and facilitating access to therapeutics at affordable prices for all. Many countries, particularly low-income developing economies, entered the crisis with high debt that is set to rise further during the pandemic. The global community will need to continue working closely to ensure adequate access to international liquidity for these countries. Where sovereign debt is unsustainable, eligible countries should work with creditors to restructure their debt under the Common Framework agreed by the G20. 

 

Proshare Nigeria Pvt. Ltd.


Download Full PDF Report Here

 

Proshare Nigeria Pvt. Ltd.

 

Related News

  1. WEO: A Long and Difficult Ascent - Global Growth Projected at -4.4% in 2020
  2. African Statistical Yearbook 2020: Africa Experienced Strong GDP Growth from 2000 to 2019
  3. Legally Speaking, is Digital Money Really Money?
  4. World Bank Plans to Invest over $5bn in Drylands in Africa
  5. How Countries Are Performing on the Road to Recovery
  6. World Bank Appears Less Optimistic About Growth Prospects Across the Globe
  7. Corruption and COVID-19: The Pandemic Has Heightened The Importance of Stronger Governance
  8. Global Output Expected to Expand by 4% in 2021, Still Below Pre-Pandemic Trend
  9. AfDB Takes Steps to Accelerate the Circular Economy in Africa
  10. African Development Bank's Board of Directors Approves the Bank's Borrowing Program for 2021
  11. Glaciers of Global Finance: The Currency Composition of Central Banks' Reserve Holdings
  12. What to do When Low-for-Long Interest Rates are Lower and for Longer
  13. World Bank Group to Boost Nigeria's Efforts to Reduce Poverty
  14. IMF Staff Completes 2020 Article IV Mission to Nigeria
  15. Open Trade and Economic Inclusion Key to Post-COVID Recovery
  16. AfDB's AgriPitch Competition Awards $120,000 in Prizes to African Youth Agripreneurs
  17. Bridging the Digital Divide to Scale Up the COVID-19 Recovery
  18. AfDB, AIF Founding Partners Announce Postponement of the Africa Investment Forum to 2021
  19. Remittance Flows to Shrink 14% by 2021 Due to COVID-19
  20. How COVID-19 Will Increase Inequality in Emerging Markets and Developing Economies
  21. SSA October 2020 Regional Economic Outlook: A Difficult Road to Recovery

 

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP