IMF upgrades UAE, global economic growth forecast

IMF upgrades UAE, global economic growth forecast

The International Monetary Fund updated UAE’s global economic growth forecast for 2021, thanks to massive vaccination efforts as well as $1.9 trillion US stimulus package which will strengthen recovery in the second half of this year.

With more than double-boost of the growth projection from 1.3 per cent in October 2020 to 3.1 per cent in its latest World Economic Outlook report. The IMF credited approval of multiple Covid-19 vaccines that can reduce the severity and frequency of infections for improved outlook of the UAE and global economy. The UAE is now the second most vaccinated country in the world after Israel.

“We are now projecting a stronger recovery in 2021 and 2022 for the global economy compared to our previous forecast, with growth projected to be 6 per cent in 2021 and 4.4 per cent in 2022. Nonetheless, the outlook presents daunting challenges related to divergences in the speed of recovery,” said Gita Gopinath, Chief Economist at IMF.

Similarly, among emerging market and developing economies, China had already returned to pre-Covid-19 GDP in 2020, whereas many others are not expected to do so until well into 2023.

Source: Khaleej Times

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