The world economy is gearing up for a strong recovery from the pandemic in 2021 after shrinking considerably less than initially feared last year, the International Monetary Fund said on 26 January, though it warned that the outlook is subject to exceptional uncertainty.

Global output is projected to grow 5.5% this year, up from the IMF’s October forecast of a 5.2% increase. Last year’s estimated contraction of 3.5% was smaller than October’s forecast for a 4.4% contraction. China was the only major economy to grow last year, expanding by 2.3% amid effective containment measures and forceful economic support, the IMF said.