The agency named the United States and China as the leaders of the “post-pandemic” world. Washington will drive the recovery with trillions of dollars in fiscal stimulus spending. Beijing’s success is due to its effective fight against the pandemic domestically.
The publication notes that the world economy’s growth will be at a record level since the 1960s and will amount to 6.9%. However, this recovery rate will not be expected in all countries due to different vaccination and drug availability rates. Developing countries and the European Union, primarily France and Italy, will be among the laggards, the agency’s experts say.
Experts expect that some countries will need several years to return to the dock level. The countries that focus on tourism in the economy will be especially hard hit.
In the first quarter of this year, the world economy grew by 1.3%. Growth is strong in the United States, while GDP shrinks in France, Germany, Italy, the United Kingdom and Japan. Russia, Brazil and India are still lagging behind China in terms of growth rates.
Among the factors affecting the pace of economic recovery, experts named the vaccination rate against coronavirus and monetary policy. Thus, according to Bruce Kasman, chief economist at JPMorgan Chase, in 2020, in most countries, including Russia, Turkey, and Brazil, the Central Bank lowered key rates to combat the crisis. But now, they have begun to tighten monetary policy to prevent the acceleration of inflation or capital outflows.