IMF revises upward global economic outlook

The International Monetary Fund has revised upward its global economic outlook for this year, citing coronavirus vaccinations and a massive US relief package.

The IMF said on Tuesday that the world economy is projected to expand 6 percent in 2021, a 0.5-point improvement from the previous forecast and a sharp rebound from last year's 3.3 percent contraction.

The IMF upgraded its US economic growth forecast by 1.3 points to 6.4 percent, citing the effect of the 2-trillion-dollar package. The US economy is also expected to recover to the pre-pandemic level this year, after a record fall in 2020.

The outlook for China has also improved by 0.3 points to 8.4 percent, as the country continues normalizing economic activities.

The projections for Japan and Germany has been notched up to positive growth of 3.3 percent and 3.6 percent respectively.

The outlook for Britain is revised upward by 0.8 points to 5.3 percent.

The differences in the margin of improvement are attributed to the pace of vaccine rollouts and the spread of virus variants.

The IMF says many countries will have to wait until next year or later to see their economies return to pre-pandemic levels, and warns that inequality could increase during economic recoveries.