But it warned that the world economy continued to face "exceptional uncertainty" and new waves of COVID-19 infections and variants posed risks, and global activity would remain well below pre-COVID projections made one year ago. In its latest World Economic Outlook, the IMF forecast a 2020 global contraction of 3.5%, an improvement of 0.9 percentage points from the 4.4% slump predicted in October, reflecting stronger-than-expected momentum in the second half of 2020. The forecast would likely rise further if the US Congress passes a $1.9 trillion relief package proposed by newly inaugurated President Joe Biden, economists say. The Fund said countries should continue to support their economies until activity normalised to limit persistent damage from the deep recession of the past year. Low-income countries would need continued support through grants, low-interest loans and debt relief, and some countries may require debt restructuring, the IMF said.

Source: bd News24 January 26, 2021 12:56 UTC