The International Monetary Fund (IMF) has projected a 5.5 percent increase in economies in 2021 with vaccines delivered to citizens, fostering economic activities globally but uncertainty taints the projection.
IMF said that governments globally would need to continue to find ways to prevent damages to econmies post-COVID-19.
The pandemic has brought about the worst economic crises since the Great Depression in the 1920s, according to the money lender.
In its report, the institution stated that the recent projection from the 3.5 percent contraction last year shows “expectations of a vaccine-powered strengthening of activity later in the year and additional policy support in a few large economies.”
It added that the developments engender “a stronger starting point for the 2021-22 global outlook than envisaged in the previous forecast.”
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It noted that “much remains to be done on the health and economic policy fronts to limit persistent damage from the severe contraction of 2020 and ensure a sustained recovery.”
Lockdowns in some countries remain a threat to the promising forecast by the lender, as they prove to be “important counterpoints to the favorable news.”
On a negative note, the IMF stated, in its report, that after the pandemic, many economies will not be able to return to their state pre-pandemic.
