IMF hopes COVID-19 vaccines will positively affect the global economy forecast

IMF hopes COVID-19 vaccines will positively affect the global economy forecast

The International Monetary Fund agency of the UN has said the development of multiple vaccines will affect the economic forecast positively. It further said, only the wealthy nations will benefit quickly due to sound economic background.

Vaccine development to help economy forecast

The International Monetary Fund agency hopes the surge in vaccine development will have a positive impact on the global economic forecast.

Their new forecast for growth this year is 5.6% and 4.3% for the year 2022. Their forecast for the UK is a bit fuzzy but will be lower than 4.6%. The UK forecast, according to the IMF, is not as bad as expected as it shows signs of growth.

Despite, this encouraging news, the estimated 12% contraction forecast for the UK is the highest among world wealthy economies. These statistics took into. Account vaccine productions and government measures to help economy stability.

Japan and US economy to quickly bounce back

Japan and US statistics contributed immensely to the results of the new economic forecast.

These nations are predicted to get back on their feet economy-wise faster than others. However, the UK and other European Union countries will take time before their economies back to the pre-pandemic era. The IMF is also expecting different economic performances from Third World countries.

For China, due to its quick containment of the COVID-19, public investment is strong and there are seeing signs that foreign investors will trickle in quickly. The Chinese government avoided a contraction last year, though its growth slowed down. However, countries that rely heavily on tourism and entertainment will be hit hard and will not likely recover until 2022.

It is expected that wealthy countries will bounce back than developing nations because of their better access to COVID-19 vaccines and also because they have a better financial support base. Despite the positive news on vaccine supply, the report also notes that the recent lockdowns due to surges in some western countries are of great economic concern. 

Similar

Cost Analysis Of Launching A Charity Organization
Cost Analysis Of Launching A Charity Organization
Embarking on the journey of launching a charity organization can be both a noble and daunting venture. Understanding the financial implications is vital to ensure the sustainability and impact of the philanthropic mission. This exploration of the costs associated with starting a charity will...
The Impact Of AI Chatbots On Customer Service Efficiency
The Impact Of AI Chatbots On Customer Service Efficiency
In the dynamic sphere of customer service, efficiency reigns supreme. With businesses constantly seeking methods to streamline support and enhance user experiences, the advent of AI chatbots has emerged as a pivotal innovation. These sophisticated tools are not just reshaping interactions between...
Embracing Digital Transformation: The Shift to e-Ticketing
Embracing Digital Transformation: The Shift to e-Ticketing
In a world where technology continues to evolve at breakneck speed, one area where this evolution is particularly evident is in the realm of ticketing. Gone are the days of standing in long queues to purchase physical tickets. The shift to e-Ticketing, a crucial aspect of digital transformation,...
Employment Opportunities in the Age of AI Chatbots
Employment Opportunities in the Age of AI Chatbots
In an era where technology is rapidly evolving, the rise of artificial intelligence (AI) has brought about significant transformation across various sectors. One area that has particularly experienced substantial growth is AI chatbots, revolutionizing customer service and business operations....