World Bank's Global Economic Outlook 2021
Everything points to a global economic recovery in 2021 and 2022 according to the World Bank. The bank expects the global economy to expand 4% for the year. This is 1% less than the pre-pandemic growth projection. This outlook is dependent on the successful curbing of the pandemic which can be achieved by timely distribution of the available vaccines. The World Bank also warned that economic activities and incomes can be depressed for a prolonged period of time. According to the World Bank Group President, David Malpass, how fast we recover depends on the policy makers. It is the way policy makers handle challenges such as public health, debt management, budget policies, and central banking and structural reforms that will determine if the current fragile economic recovery gains traction and spur robust growth.
In a pessimistic scenario where the pandemic is not curbed due to spreading of the new covid strain and a delayed vaccine rollout, the World Bank forecasts an 1.6% Global economic growth. In an optimistic scenario where the pandemic is successfully curbed with a faster vaccination process, global growth can accelerate up to 5% in 2021 said the World Bank. The U.S. GDP is expected to grow 3.5% in 2021 and the Eurozone 3.6%.