World Bank projects strongest post-recession growth in 80 years

The World Bank is projecting global growth of 5.6 percent this year, the strongest post-recession recovery seen in 80 years.

In a report released Tuesday, the multilateral institution raised its forecast from January, when it was expecting the global economy to expand 4.1 percent.

The global economy last year contracted by 3.5 percent due to COVID-19 pandemic.

The World Bank said in Tuesday’s report that economic growth going forward will benefit some countries more than others.

“This recovery is uneven and largely reflects sharp rebounds in some major economies—most notably the United States, owing to substantial fiscal support—amid highly unequal vaccine access,” the report reads.

The U.S. economy is projected to grow 5.4 percent and China’s is expected to grow 8.5 percent, according to the World Bank, which said a stunted recovery is likely in the Middle East, North Africa, Latin America and the Caribbean.

Smaller, tourist-dependent regions are likely to take even longer to recover, the report said, until COVID-19 travel restrictions are fully lifted.

“While there are welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world,” World Bank Group President David Malpass said in a statement Tuesday.

“Globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low-income countries,” he added. “As the health crisis eases, policymakers will need to address the pandemic’s lasting effects and take steps to spur green, resilient, and inclusive growth while safeguarding macroeconomic stability.”

To help overcome ongoing challenges to growth, the World Bank called for global deployment of COVID-19 vaccines and for strengthening existing health systems.