World economy was promised problems

In the near future, the world economy will face new problems due to regular outbreaks of coronavirus in a number of countries, the head of the Philippines promised Central Bank Benjamin Diokno. His words are quoted by CNBC.

“I think recent events indicate deterioration, not improvement in the short term,” Diokno said.

According to International Monetary Fund , at the end of the year world GDP will fall 4.4 percent. This, Diokno pointed out, now appears to be an optimistic outlook.

The world has not yet begun to feel the effect of the start of vaccination, and the outbreaks of COVID-19 in the US and Europe have already begun to put pressure on the economy again. Now, over 68 million cases of coronavirus infection have been registered worldwide, over one and a half million people have died. The most difficult situation is developing in the USA, India and Brazil. The availability of the vaccine will improve the outlook for the global economy, but this will not happen until the first quarter of 2021.

According to forecast Organization for Economic Cooperation and Development (OECD), the world economy next year will recover at a slower pace than previously thought. The OECD estimates that world GDP will increase by 4.25 percent in 2021 and by 3.75 percent in 2022. The September forecast projected the rate to rise by five percent next year.