PHOTO
The global economy has improved on the back of widespread vaccine rollout and is now expected to grow at its fastest rate in more than four decades, according to Euromonitor International.
The market-research firm has revised its forecast for global real gross domestic product (GDP) growth in 2021 to 5.8 percent, a 0.5 percentage point upgrade to its Q1 forecast.
However, Euromonitor warned that the catastrophic resurgence of COVID-19 in some countries like India could drag down the economic growth in developing markets.
“The [latest] forecast upgrade is mainly driven by advanced economies, which are now expected to grow by 5 percent in 2021, a 1 percentage point increase relative to the Q1 forecast, and by almost 4 percent in 2022, a 0.7 percentage points forecast upgrade,” Euromonitor said in its report released on Monday.
Vaccine rollout
Business activity has picked up in some economies following the easing of COVID-19 restrictions and large-scale vaccination campaign. More countries like Spain, France, Italy and Greece have also announced they are reopening their borders to international visitors, a move that is seen to provide a much-needed boost to the travel, tourism and hospitality industries.
In its report, Euromonitor said that countries that have “relatively fast vaccine deployment” and strong fiscal stimulus measures can help the economic recovery.
Among the advanced economies, the United States and United Kingdom have led to a major upgrade in economic growth forecasts.
In other countries like China, Mexico and Turkey, the economic outlook has also improved on the back of stronger than expected recoveries at the end of 2020 and early 2021.
“However, the emergence of a major new pandemic wave in India during spring 2021 is expected to cause an economic contraction in Q2, leading to a significant forecast downgrade,” said Euromonitor.
“The COVID-19 pandemic remains a significant constraint on global economic activity in Q2, with ongoing lockdowns and social distancing measures in many countries. However, more targeted lockdowns and greater consumer adaptation, such as online shopping, have reduced the impact of recent lockdowns.”
The UAE has recently led the world in COVID-19 vaccination rates.
As of Sunday, the UAE administered an additional 21,741 doses, to reach a total number of doses distributed to over 13.3 million, or 134.63 does per 100 people.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2021
