The global economy is expected to rebound to 5.2% in 2021 as against 4.4% 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.
Key highlights and projections for 2021
- The advanced economies with a year-on-year growth of 3.9% are expected to get further strengthened in 2021.
- The US and the Euro area will grow year-on-year by 3.1% (2020: -4.3%) and 5.2% (2020:-8.3%) 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 6.0% 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% by the end of 2021, from -3.0% recorded in 2020.
- In 2021, the SSA regional heavyweights like Nigeria and South Africa would grow year-on-year growth rates of 1.7% (-3.4%: 2020) and 3.0% (-8.0%: 2020) respectively, albeit below their potentials.
- Ghana’s economy will be strengthened in 2021 as it grows year-on-year by 4.2% as against 0.9% in 2020.
- Angola will record its first growth in two years, though at year-on-year of 3.2% in 2021, from -4.0% recorded in 2020, -0.9% in 2019.
- The growth for economies that are largely dependent on commodity exports and tourism would be challenged and might face weaker recovery.
What this means
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, etc.