The International Monetary Fund (IMF) is forecasting a stronger post-pandemic economic recovery for developed economies.
The IMF believes most advanced economies will emerge from the coronavirus crisis with little lasting damage, thanks to the relatively rapid rollout of vaccines and their willingness to increase sharply public spending and borrowing, according to a Financial Times report.
But the IMF has expressed concern that the likely success in managing the economic fallout from the pandemic will not be replicated in emerging economies.
According to the BBC, the IMF’s chief economist Gita Gopinath says in a blog on the forecasts, a way out of the health and economic crisis is increasingly visible. Vaccinations, she writes, are likely to power recoveries in many countries in 2021.
But she is also concerned about how those recoveries are diverging.
Countries with slower vaccine rollouts, more limited support from economic policy, and those more reliant on tourism are likely to do less well.
The first two of these are particular issues for developing countries. Many have less access to vaccines, and they also tend to find it more difficult to finance economic and health policy actions.