The International Monetary Fund (IMF) has revised its forecast for global economic expansion to 6pc this year on higher growth in the US, China, and India.
The fund projected the global economic growth to moderate to 4.4pc in 2022 in its latest World Economic Outlook released on Tuesday. IMF indicated that it had revised its projections upward due to the fiscal stimulus packages announced in countries like the US, China, and other large economies as well as the recovery after aggressive vaccine rollouts in these economies.
However, it warned that while some countries may see a higher growth rate, other major economies would lag.
Among the advanced economies, IMF pegged the fastest growth for the US at 5.1pc in 2021 before moderating to 3.6pc next year. The EU’s growth is expected to be more modest at 4.4pc this year and 3.8pc in 2022, followed by Japan at 3.3pc and 2.5pc, the UK at 5.3pc and 5.1pc, and Canada at 5pc and 4.7pc over the same timeframe.
China and India will lead the economic growth in the emerging markets, according to IMF data, with the former’s economy growing by 8.4pc and 5.6pc in 2021 and 2022, respectively, and the latter growing by 12.5pc and 6.9pc over the same period. The ASEAN countries will grow by 4.9pc this year and 6.1pc in 2022, while the emerging economies in Europe are expected to grow at a pace of 4.4pc and 3.9pc in 2021 and 2022, respectively.
Latin America’s growth will be led by Mexico and Brazil. While Mexico’s economy is expected to grow by 5pc and 3pc this year and next, Brazil’s growth will be more modest at 3.7pc and 2.6pc.