WASHINGTON: The spread of COVID-19 vaccines will power a stronger global economic recovery in 2021, the International Monetary Fund forecast Tuesday.
After sinking 3.5 percent in 2020, the worst year since World War II, the global economy will grow 5.5 percent this year, the 190-country lending organization predicted. The new figure for 2021 is an upgrade from the 5.2 percent expansion the IMF forecast in October and would mark the fastest year of global growth since the 2010 snapback from the financial crisis.
The vaccines should contain the spread of the virus and allow governments around the world to ease lockdowns and encourage a return to normal economic activity. But the IMF also says economies worldwide will need support from their governments to offset the damage from the pandemic and warns that coronavirus mutations could cloud the outlook for global health and economic growth.
In an update to its World Economic Outlook, the IMF said that it expects the US economy — the world’s biggest — to expand 5.1 percent this year after collapsing 3.4 percent in 2020. No. 2 China is expected to record 8.1 percent growth after eking out a 2.3 percent increase in 2020.
The 19 countries European countries that share the euro currency will collectively register 4.2 percent growth this year after seeing economic output crater 7.2 percent in 2020, the IMF says. The Japanese economy is forecast to grow 3.1 percent, reversing a 5.1 percent decline in 2020.
The IMF gave India a big upgrade, thanks to a faster-than-expected recovery at its factories and farms: The Indian economy is forecast to expand 11.5 percent in 2021, fastest among major economies, and a turnaround from 2020’s decline of 8 percent.
The agency also expects global trade to rebound this year: recording 8.1 percent growth after falling 9.6 percent last year.
IMF: Coronavirus vaccines will power 5.5% global economic growth in 2021
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IMF: Coronavirus vaccines will power 5.5% global economic growth in 2021
- The vaccines should contain the spread of the virus and allow governments around the world to ease lockdowns
India seals $3bn LNG agreement with UAE
- Leaders hold talks to strengthen trade, defense ties
NEW DELHI, DUBAI: India signed a $3 billion deal on Monday to buy liquefied natural gas from the UAE, making it the Gulf country’s top customer, as the leaders of both countries held talks to strengthen trade and defense ties.
The agreement was signed during a very brief two-hour visit to India by UAE President Sheikh Mohammed bin Zayed Al-Nahyan for talks with Indian Prime Minister Narendra Modi.
They pledged to double bilateral trade to $200 billion in six years and form a strategic defense partnership.
Abu Dhabi state firm ADNOC Gas will supply 0.5 million tonnes of LNG a year to India’s Hindustan Petroleum Corp. for 10 years, the companies said.
ADNOC Gas said the agreement brings the total value of its contracts with India to over $20 billion.
“India is now the UAE’s largest customer and a very important part of ADNOC Gas’ LNG strategy,” the company said.
The UAE is India’s third largest trading partner and Sheikh Mohammed was accompanied by a government delegation that included his defense and foreign ministers. The two sides signed a letter of intent to work toward forming a strategic defense partnership, India’s Foreign Secretary Vikram Misri told reporters.
Misri, however, said that the signing of the letter of intent with the UAE does not mean that India will get involved in regional conflicts.
“Our involvement on the defense and security front with a country from the region does not necessarily lead to the conclusion that we will get involved in particular ways in the conflicts of the region,” he said.
