FX.co ★ Global economy to grow in 2021 amid vaccines availability

There are all reasons to think that the global economy will resume growing as early as next year. Analysts suppose that the availability of the coronavirus vaccine is the main driver of this rise.

Kristalina Georgieva, Managing Director of the IMF, also supports this idea. “Faster-than-expected containment of the virus or the development of better treatments would allow for a quicker return to normal activity, limit economic scarring, and boost growth,” Fund chief Kristalina Georgieva said. A mass vaccination campaign will launch the growth of the global economy. According to the IMF’s forecasts, in 2020, the global GDP will contract by 4.4%.

“Last month, the IMF projected a historic global GDP contraction of 4.4 percent in 2020. And we expect a partial and uneven recovery next year, with growth at 5.2 percent,” Kristalina Georgieva noted. “Data since our latest projections confirm the global recovery has continued,” she added. However, she cautioned that these predictions may come true, only if vaccines and treatment are available everywhere.

The availability of the vaccine and its mass production will contribute to curbing the virus spread. The outbreak of the coronavirus infection occurred in Central China at the end of 2019. The virus hit most countries of the world. On March 11, the World Health Organization declared the coronavirus outbreak a pandemic.