The World Bank expects a massive global growth this year. It predicts that due to the covid-19 vaccinations and massive government stimulus in rich countries, there will be the fastest worldwide expansion in almost five decades.
As per the World Bank’s Global Economic Prospects Report, the world economy will grow 5.6% this year, which is more than the 4.1% that it had forecast in January.
Owing to the trade disruptions and forced business closures due to the pandemic, the global economy last year came down 3.5%. If the projected expansion actually takes place, then 2021 will be the fastest year of growth since 1973, which had a growth of 6.6%.
However, the bank expects that the 2021 rebound will be uneven and rich countries such as the US will lead by spending vast amounts of tax payer money to support their economies. World Bank believes that 90% of advanced economies will return to their pre-pandemic states next year in accordance with income per person, while just a third of developing countries will be able to do the same.
The World Bank wants that covid vaccines should be distributed widely to low income countries, where inoculations have gone slowly. As per the bank, the US economy may 6.8% in 2021, which will be up from 3.5% that it forecast in January. It also expects that China, who was the first one to emerge from the covid-19 recession, will grow 8.5% in 2021, while it epxnade only 2.3% last year.