The global economy is expected to expand 5.6% in 2021, the fastest post-recession pace in 80 years, driven largely by strong rebounds from a few major economies, the World Bank said.
Noting in its June 2021 Global Economic Prospects, the World Bank added that many emerging markets and developing economies continue to struggle with the novel coronavirus (COVID-19) pandemic and its aftermath.
Economic activity in the Middle East and North Africa (MENA) region is forecast to advance by 2.4% this year, and 3.5% next year.
“Despite the recovery, global output will be about 2% below pre-pandemic projections by the end of this year,” the report read, “Per capita income losses will not be unwound by 2022 for about two-thirds of emerging market and developing economies.”
Among low-income economies, where vaccination against COVID-19 has lagged, the effects of the pandemic have reversed poverty reduction gains, and aggravated insecurity and other long-standing challenges, the World Bank noted.
“While there are welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world,” said World Bank Group President David Malpass.
He added that globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low-income countries.
As the health crisis eases, policymakers will need to address the pandemic’s lasting effects and take steps to spur green, resilient, and inclusive growth while safeguarding macroeconomic stability.