Global Economies - Embracing Necessary Reforms to Retain Momentum
On the global level, the economy is expected to expand by at least 4% in 2021. In many countries, mass vaccination programs are underway because the governments are committed to accelerate their economic program. Economic recovery is likely to take place because policymakers around the world are planning to implement various investment enhancing reforms. According to the recent report of the World Bank, the situation will change in 2021. Mankind suffered terribly in 2020. Millions of people lost their life and countless plunged into poverty. However, the economic situation is already improving in most parts of the world.
Global economic recovery is underway
Most nations around the world are focusing on vaccine deployment to eliminate this pandemic and put an end to this economic distress. In various nations, authorities are trying their best and facilitating re-investment cycles. It is very normal that after a major setback, the initial recovery figures are small but still they are setting foundation for strong growth in the future.
Improvement in the business environment
Economic experts are recommending the corporate sector and economic leaders to make necessary adjustments in the business environment. Also, there is a requirement to enhance labor and product market flexibility while strengthening the transparency. Global economy did not suffer severe loss, thanks to shallower contractions in giant economies such as China. This Asian giant registered a quick economic recovery that also gave signs of hope to other nations.
Necessity of vaccine deployment
The world leaders and economic experts are fully aware that successful pandemic control and vaccine deployment is the key to economic success. According to experts, the global growth can touch an impressive figure of 5% if the pandemic is successfully eliminated.
Growth projection of advanced economies
World’s largest economy, the United States of America, is set to expand by 3.5% in 2021. Most countries in Europe are likely to register an impressive growth of 3.5 %. The Japanese economy is likely to grow by 2.5%. China is likely to register 8.6% growth in 2021. South Asia, Middle East and North Africa, all regions are expecting positive growth rates this year which is bringing back the hope of investors.
Time to embrace comprehensive reforms
Global growth was slow in 2020 due to pandemic but timely introduction of reforms can bring things back on track. Policymakers are doing everything in their capacity to steer the fundamental drivers of sustainable economic growth. They are also shifting from income support towards growth enhancing policies. The emerging markets must improve their infrastructure of health and education. It is the time to mitigate the economic damage caused by the pandemic.
Role of central bank and economic leaders
The Central Banks in emerging markets and developing nations have taken an active role. Many Central Banks have employed asset purchase programs to counter financial market pressures caused by pandemic. Thanks to such steps, now the financial markets in most parts of the world appear to be stabilized. In countries like UAE, the banks are issuing loans to accelerate the pace of growth. It indicates that Arab world has successfully faced economic slowdown. Now, many investors are working on their plans with full confidence because they are already aware of the good results