Economics

IMF Boosts World Growth Outlook as Vaccines Outweigh Risks

  • U.S., Japan forecasts see big improvements on fiscal-aid plans
  • Virus variants and new outbreaks remain threats to the outlook

Patients wait following their first dose of the Covid-19 vaccine in Seattle, on Jan. 24.

Photographer: Grant Hindsley/AFP/Getty Images

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The International Monetary Fund raised its forecastBloomberg Terminal for global growth this year, betting the rollout of coronavirus vaccines and more fiscal stimulus will offset the immediate challenge posed by the resurgent pandemic.

Global gross domestic product will soar 5.5% this year, faster than the 5.2% projected in October, the fund said Tuesday. It credited improvement in the U.S. for much of the upgrade, which was offset by cuts to its predictions for the euro area and U.K.