IMF: global economy projected to grow in 2021

By Trend

In a baseline scenario, which assumes that the pandemic fades in the second half of 2020 and containment efforts can be gradually unwound the global economy is projected to grow by 5.8 percent in 2021 as economic activity normalizes, helped by policy support, Trend reports citing the International Monetary Fund (IMF).

"However, the risks for even more severe outcomes are substantial. Effective policies are essential to prevent the onset of dire consequences, and the necessary measures to combat the pandemic and protect people's health are an important contribution to ensuring people's health and economic well-being on a long-term basis," said the message.

According to the data, the COVID-19 pandemic leads to large losses worldwide and the necessary protective measures seriously affect economic activity. According to forecasts, as a result of the pandemic, the world economy will sharply decrease by 3 percent in 2020, which is much worse than during the financial crisis of 2008-2009.

Since economic consequences are acutely felt in specific sectors of the economy, the relevant governing bodies will need to take significant targeted measures in the financial sector, monetary policy and financial markets to support affected households and enterprises within countries, the message said.

At the international level, overcoming the effects of the pandemic requires strong multilateral cooperation, including to assist countries in financial difficulties and double shock in health and financing, and to help countries with weak health systems.