The global economy continues to recover in Q2 2021 following the deep economic crisis caused by the COVID-19 pandemic in 2020. The growth accelerated as a result of the easing of virus-containment restrictions in most countries. IMF (July 2021) estimates that global GDP growth will reach 6% year over year (y/y) in 2021. Though this rebound is uneven – compared to the previous estimates (April 2021), growth projections for emerging markets and developing economies are revised downward. This is driven by slower than anticipated mass vaccination in the developing economies, where infection rates remain quite high and various restrictions are still in place. In contrast, mass immunization is more successful in developed countries. Together with additional fiscal support announced in some of the countries in the second half of 2021, it drove the annual growth forecast for advanced economies up by 0.5 percentage points (pp).
United States and Euro area are projected to expand by 7% and 4.6%, respectively, while the Chinese economy is expected to grow by 8.1%. In addition, Georgia’s neighbors Russia and Turkey are each projected to show moderate growth this year: 4.4% and 5.8% y/y respectively.