With widespread immunization, the global economy is likely to expand by 4% this year. This is according to a World Bank report released on Tuesday.
However, the recovery could be as high as 1.6% if the authorities do not act decisively to control the epidemic and implement reforms that encourage investment. Is part of the data Read global economic perspectives.
The global economy is estimated to have shrunk by 4.3% last year, a less severe contraction than previously predicted. This was due to the shallower contraction in the wealthy economies and the much stronger recovery in China.
However, the disruption of economic activity in emerging and emerging economies was more severe than expected. According to the World Bank, the epidemic has increased credit risks in these economies.
Risks of growth, including in Latin America and the Caribbean, persist as economic activity and incomes may remain low for a long time. The region was severely affected by Govt-19 from a health and economic point of view.
Of the 10 emerging economies with epidemiological mortality rates, five are in the region, including Brazil. In addition, the regional economy is estimated to have shrunk by 6.9% in the past year.
By 2021, economic activity in Latin America and the Caribbean is expected to grow by 3.7%. For Brazil, growth is expected to be 3% this year, down from 4.5% last year.
The study recommends pursuing policies to improve health and education services, digital infrastructure and business and administrative practices to reduce the economic damage caused by poverty and epidemics.
Moreover, in economies with more debt and few resources to invest, reforms to promote organic growth will be particularly important.