IMF: Global economic growth forecast for 2021 at 5.5% vs. 5.2% in October

In its latest World Economic Outlook report, the International Monetary Fund (IMF) revised up its forecast for 2021 global economic growth to 5.5% from 5.2% in October’s publication, as reported by Reuters.

Key takeaways as summarized by Reuters

“IMF forecasts 2020 global economic contraction at 3.5% vs. October forecast of 4.4% contraction, cites stronger-than-expected momentum in second half 2020.”

“IMF cites ‘exceptional uncertainty’ about the economic outlook, says renewed waves and variants of covid-19 pose risks.”

“IMF forecasts 8.1% growth in global trade volumes in 2021, moderating to 6.3% growth in 2022, following a contraction of 9.6% in 2020.”

“IMF revises up forecast for US growth to 5.1% in 2021 from October forecast of 3.1%, sees 2.5% growth in 2022 vs. 2.9% in October.”

“IMF revises up forecast for India growth in 2021 to 11.5% vs. 8.8% in October, sees 6.8% growth in 2022 vs. 8% in October.”

IMC forecasts growth of 8.1% in China in 2021, vs. 8.2% in October, sees 5.6% growth in 2022 vs. October forecast of 5.8%.”

“IMF says countries should continue to support economies until vaccine-powered normalization is underway.”

“IMF says low-income countries need support through grants, loans and debt relief; debt restructuring may be unavoidable for some.”

Market reaction

This report doesn’t seem to be having an impact on market sentiment. As of writing, the US Dollar Index was posting small daily losses at 90.30.