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Global Economy to Expand by 4% in 2021, Vaccines Key to Sustaining Recovery, World Bank Reports

WASHINGTON (Sputnik) - The global economy is expected to grow by 4.0 percent in 2021, with coronavirus vaccine deployments and investments being key to sustaining the economic recovery, the World Bank said in its 2021 Global Economic Prospects on Tuesday.
Sputnik

"The global economy is expected to expand 4 percent in 2021, assuming an initial COVID-19 vaccine rollout becomes widespread throughout the year," the World Bank said. "Although the global economy is growing again after a 4.3 percent contraction in 2020, the pandemic has caused a heavy toll of deaths and illness, plunged millions into poverty, and may depress economic activity and incomes for a prolonged period."

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Russia’s economy is expected to grow by 2.6 percent in 2021, regaining some of the previous year’s losses at a slower pace than many of its regional neighbors, the World Bank said.

"Growth in Russia, the region’s largest economy, is envisioned to pick up only modestly in 2021, to 2.6 percent, as the country grapples with a renewed acceleration in COVID-19 infections," it added.

​In its economic outlook published last October, the World Bank anticipated Russia’s GDP to contract by 5 percent in 2020 - an 11-year low - and rebound by 2.8 and 2.4 percent in 2021 and 2022, respectively. The renewed growth is expected to be supported by the rollout of a coronavirus vaccine, a rise of industrial commodity prices and continuation of supportive policy measures.

The World Bank said to projects the Turkish economy, the second largest in the region, to grow 4.5 percent in 2021 and growth in Central Europe to reach 3.6 percent.

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The two largest economies, those of the United States and China, are expected to grow by 3.5 and 7.9 percent, respectively, the World Bank noted.

"US GDP is forecast to expand 3.5 percent in 2021, after an estimated 3.6% contraction in 2020," it said. "China’s economy is expected to expand by 7.9 percent this year following 2 percent growth last year."

Economic activity in Japan, which shrank by 5.3 percent last year, is forecast to grow by 2.5 percent in 2021, the World Bank added.

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