Global economy to expand; job growth to struggle

The global economy is expected to emerge from the coronavirus drag this year, accelerating at a pace last seen in the 1970s as most major economies stage a strong rebound.

After the global economy suffered from its sharpest recession, analysts predicted that it will expand 5.9% this year. The forecast came larger than the 5.3% jump expected in January and just a shade lower than the International Monetary Fund’s 6% expectation.

The United States’ vaccine-led recovery, massive liquidity, and fiscal stimulus are factors that heavily boosted the global outlook. The labor market, on the other hand, will remain subdued.  While the latest employment outlook fared better this year, the coronavirus crisis will still leave millions of workers unemployed and several economic sectors suffering.