Global economy to grow to 5.2% in 2021 – Cordros Capital
By Kayode Tokede
The global economy is expected to rebound to 5.2per cent in 2021 as against 4.4per cent in 2020, according to the presentations by Cordros Capital at its e-press conference titled “Positioning in the New Normal”.
According to Cordros Capital, this feat can only be achieved on the strength of sustained supportive monetary policies, varying degrees of fiscal stimulus, and availability and adoption of virus vaccines in several countries in the world.
The advanced economies with a year-on-year growth of 3.9per cent are expected to get further strengthened in 2021.
The US and the Euro area will grow year-on-year by 3.1 per cent (2020: -4.3 per cent) and 5.2per cent (2020:-8.3 per cent) respectively, as the countries implement robust fiscal and monetary stimulus packages that would galvanize the economy and hasten the recovery process.
The emerging and developing economies will print a year-on-year growth of six per cent predicated on the growth prospects in China’s economy.
Sub-Saharan Africa’s (SSA) economy is expected to achieve a year-on-year growth of 3.1 per cent by the end of 2021, from -three per cent recorded in 2020.
In 2021, the SSA regional heavyweights like Nigeria and South Africa would grow year-on-year growth rates of 1.7 per cent (-3.4 per cent: 2020) and three per cent (-eight per cent: 2020) respectively, albeit below their potentials.
Ghana’s economy will be strengthened in 2021 as it grows year-on-year by 4.2 per cent as against 0.9per cent in 2020.
Angola will record its first growth in two years, though at year-on-year of 3.2 per cent in 2021, from -4.0 per cent recorded in 2020, -0.9 per cent in 2019.
The growth for economies that are largely dependent on commodity exports and tourism would be challenged and might face weaker recovery.
The global economic growth means an increase in real GDP – an increase in the value of national output, income and expenditure.
Essentially the benefit of economic growth is higher living standards – higher real incomes and the ability to devote more resources to areas like health care, education, infrastructural developments, among others.
