January 26, 2021: Optimism that new vaccines will bring the pandemic under control and allow economic activity to resume coupled with a stimulus in major economies has boosted the growth forecast this year to 5.5 percent, the IMF said Tuesday.

“These developments indicate a stronger starting point for the 2021-22 global outlook,” the IMF said in its latest World Economic Outlook (WEO).

The fund expects growth in the United States to be a full two points higher than previously projected at 5.5 percent, its strongest rate since 1984, while the IMF forecasts China growing 8.8 percent.

But the Washington-based crisis lender warned the outlook is beset by “extraordinary uncertainty” and more action is needed to prevent lasting damage.

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