The International Monetary Fund on Tuesday raised its forecast for global economic growth, citing the “vaccine powered” recovery and additional fiscal stimulus. The Washington-based lender also marginally raised its projection for South African growth this year to 3.1% from 3% previously.
Fiscal shots in the arm have come from a handful of advanced economies, notably the US, where the administration of Joe Biden aims to roll out an ambitious $2-trillion plan to boost productivity while tackling inequality, poverty and infrastructure woes. “Thanks to the ingenuity of the scientific community, we have multiple vaccines that can reduce the severity and frequency of infections. In parallel, adaptation to pandemic life has enabled the global economy to do well despite subdued overall mobility, leading to a stronger-than-expected rebound, on average, across regions,” it said.