International Monetary Fund boosts eurozone’s growth forecast

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In 2020, the rate was 9.2% and in 2022 it should slide to 9.0%. China recaptured all of its lost growth by the end of 2020.

The IMF indicated that the robust growth is attributed to additional fiscal support in a few large economies, as well as the distribution of vaccines which will fuel recovery in the second half of the year. The Euro Area is projected to grow at 4.4% and 3.8% over these time periods; China, at 8.4% and 5.6%.

Britain has suffered Europe's highest coronavirus death toll and its economy shrank by nearly 10 per cent a year ago, the worst performance among the region's big economies except for Spain. Considering the uncertainty caused by Covid-19 cases, the World Bank gave a range for India's economic growth - from 7.5 per cent to 12.5 per cent - in FY22. Concerns about the credit quality of hard-hit borrowers and the profitability outlook are likely to weigh on the risk appetite of banks during the recovery, said the report.

Because a financial crisis was averted, medium-term losses are expected to be smaller than after the 2008 global financial crisis, at around 3%.

CARE Ratings had on Monday said that even lockdown in Maharashtra would dent India's gross value added (GVA) during the 2021-22 financial year by 0.32 per cent. The US economy is now estimated to grow 6.4% in 2021 and broadly outpace other developed nations.

The nation's economy will grow by 4.3% in 2022, the International Monetary Fund forecast in its latest World Economic Outlook report.

That mainly reflects up-rating to the forecast for developed economies, especially the United States. The US economy is also expected to recover to the pre-pandemic level this year, after a record fall in 2020.

The fund's outlook for EM economies rose by just 0.4 percentage point - half of the advanced economy mark-up - to 6.7% from the view in January.

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The Fund's report further highlighted that the positive trend in the current account would continue and predicted that the current account balance would remain at 1.5 percent of the GDP.

The IMF has upgraded both its United Kingdom and global forecasts compared with what it projected in January.

Britain's economy will rebound more than previously thought this year thanks to the success of the vaccine programme.

Global recovery from the pandemic is expected to be asynchronous and uneven among advanced, emerging and frontier market economies as well as within regions, economies, sectors and firms.

"We do see signs in some countries that hesitancy is more of an issue", she said. "Nonetheless, the outlook presents daunting challenges related to divergences in the speed of recovery both across and within countries and the potential for persistent economic damage from the crisis", she said in her foreword to the report.

"These diverging recovery paths are likely to create wider gaps in living standards across countries compared to pre-pandemic expectations", Gopinath said.

"Global growth is projected at 6 percent in 2021, moderating to 4.4 percent in 2022". "Close to 95 million more people are estimated to have fallen below the threshold of extreme poverty in 2020 compared to pre-pandemic projections", the report read. However, emerging markets and low income countries are expected to suffer more medium-term than their high income counterparts, according to the International Monetary Fund.

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