June 9, 2021 | Investopaper
World Bank has updated its global economic growth outlook for 2021. The bank has projected rapid economic growth due to the increasing use of vaccines against COVID-19 and rich countries spending heavily on government assistance. According to the bank, this growth will be the highest in the last five decades. In 1973, the world’s economic growth was 6.6 percent.
The Global Economic Prospects report released on Tuesday projected global economic growth to be 5.6 percent in 2021. Last January, the bank had projected 4.1 percent economic growth this year. The world economy shrank by 3.5 percent last year. The coronavirus epidemic has had a negative impact on economic growth, disrupting trade, shutting down businesses and forcing people to stay indoors.
United States, the world’s largest economy, will grow by 6.8 percent in 2021. The US economy was projected to grow by only 3.5 percent in January. US lost 3.5 percent of its economic growth last year due to Covid.
China’s economy, the world’s second-largest, is projected to grow 8.5 percent in 2021. China’s economy grew 2.3 percent last year after opening the economy by controlling the coronavirus.