Canada’s economy to grow 5% in 2021 – IMF
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The International Monetary Fund released its World Economic Outlook ( Video) on Tuesday which revealed their expectation that Canada’s economy will grow five percent in 2021, 1.4 percentage points higher than their previous forecast.
Stronger recoveries from the Covid-19 pandemic in the US, Canada, the UK, and other rich western countries will result in faster than expected growth for the global economy this year, the International Monetary Fund has predicted.
The Washington-based IMF’s half-yearly World Economic Outlook (WEO) Download here said successful vaccine programmes, businesses adapting to the challenges of lockdown and Joe Biden’s $1.9tn (£1.4tn) stimulus package had been key factors in the upgrade.
After contracting by 3.3% in 2020, the IMF said the world economy would now grow by 6% in 2021 and a further 4.4% in 2022. The last WEO in October had predicted an expansion of 5.2% in 2021 and 4.2% in 2022. The October forecast for 2021 was later upgraded to 5.5% growth in January this year.
According to IMF calculations, cumulative per capita income losses over 2020–22, compared with pre-pandemic projections, will be 20% of 2019 per capita GDP in emerging markets and developing economies (excluding China), while in advanced economies the losses are expected to be 11%.