Moody’s: Global GDP seen rebounding to 5.7% in 2021

“The global real gross domestic product (GDP) is likely to rebound 5.7% in 2021, following the historic 3.6% contraction in 2020,” Moody’s Analytics said in its 'Global Outlook: Resurgence Risks to Recovery' report released on Thursday.

Additional takeaways

"However, global recovery will continue to be uneven across regions and the dual-track recovery will persist until the new resurgences are brought under control and the global vaccine distribution is scaled up.”

“The US is expected to lead the gains with a strong 6.4 percent rebound in 2021, followed by Asia with a 6.1 percent expansion, anchored by China’s stabilizing growth and India’s turnaround in the post-restrictions phase.”

Conversely, African economies are likely to see slower growth at 4.3 percent, following the record three percent decline in 2020.

“In severely impacted countries, such as Malaysia and the Philippines, restrictions have lacked effectiveness in containing outbreaks, thereby mandating an extension of inhibiting curbs.

“While others such as Indonesia have adopted a less conservative approach, there is a real risk that the economic costs of relaxing restrictions too soon may significantly outweigh the short-term gains from reopenings.”