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This year has become a real challenge for the global economy. For the first time in more than 70 years, the economy fell into its deepest recession. However, recovery is set to begin in 2021, economists at IHS Markit said.
Experts are confident that successful vaccination against COVID-19 will contribute to economic growth, which could reach 4.5%. Economists explain their forecast by the fact that after the vaccination, travel and services will become a source of profit. Thanks to this, economic indicators will rise significantly in the second half of 2021.
Global GDP has lost 4% this year, however, it may grow by 4.5% in 2021, reaching a new high, experts are sure.
Experts also noted that the economies of different countries would recover unevenly. For example, China's economy revived in the spring of 2020, while European countries could reach pre-crisis levels only in 2023.
In addition, in 2021, the labor market situation may improve in many counties. Nevertheless, the unemployment rate is likely to increase in Western Europe amid cuts in government funding for employment support programs. Moreover, experts believe that in 2021, the attention of investors and authorities will switch from COVID-19 to the consequences of climate change. Perhaps the trend of environmentally and socially responsible investment may continue.
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