The International Monetary Fund (IMF) has drastically revised its outlook on the future of the US economy. Having assessed the pace of the vaccination campaign and the current state of economic indicators, IMF experts found a good reason to be optimistic.
According to the upwardly revised forecast, the pace of economic growth in the United States will beat IMF’s previous expectations in 2024. Several factors are in favour of such a radical outlook revision. The main one is the ability of developed countries to adapt. They have built a system that has a large margin of safety and can quickly mobilize all available resources so that the country can fully adapt to changes. As a result, developed countries were able to minimize economic losses amid the reintroduction of restrictions during the second wave of the coronavirus pandemic.
The second factor is the large-scale financial aid of citizens who lost their jobs. The United States, Canada, Europe, and Japan allocated hefty sums to pay compensation to businesses and the population. According to IMF Managing Director Kristalina Georgieva, if the governments did not support their economics, the world could have faced a new Great Depression. The third major factor of future economic success in the US is the emergence of vaccines.
Developed countries, in their turn, will lag behind the US. Their decision not to support their own citizens, the lack of income protection, a less effective health care system, and a weaker pace of vaccine rollout along with the use of dubious jabs will slow down their economic recovery.
