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.