World economic expansion will depend on vaccination against Covid-19
- Written by Prensa Latina
- Published in World
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The world's economy will expand by four percent in 2021 if governments manage to broaden the initial distribution of Covid-19 vaccines throughout the year, the World Bank announced on Tuesday.
In the January Global Economic Outlook, the Bank deemed that recovery is likely to be moderate unless policymakers act decisively to control the pandemic and implement reforms that boost investment.
Although the world economy is growing again after a 4.3 percent contraction in 2020, policymakers face enormous challenges in public health, debt management, budgetary policies, central banking and structural reforms, assured David Malpass, president of the World Bank Group.
'To overcome the Covid-19 impacts and counteract the adverse factors affecting investments, a major push is needed to improve the business environment, increase labor and product market flexibility, and strengthen transparency and governance,' he noted.
According to the text, the short-term outlook remains highly uncertain and growth outcomes may still be different.
In a negative scenario, where infections continue to go up and vaccine distribution is delayed, global expansion could be limited to 1.6 percent.
