The International Monetary Fund (IMF) Tuesday released its latest World Economic Outlook, predicting global economic growth of 5.5 percent this year and 4.2 percent in 2022.
The IMF said regional growth momentum in the second half of 2020 was stronger than expected on average, leading to an increase of 0.3 percentage points in its forecast for global growth this year from October.
The IMF expects wide variations in the strength of the recovery and while vaccination campaigns in some countries have raised hopes that the outbreak will improve later this year, the recent emergence of new outbreaks and mutated viruses has added uncertainty to the world economic recovery.
The IMF forecasts advanced economies will grow 4.3 percent this year, with the US at 5.1 percent and the Eurozone at 4.2 percent.
Emerging market economies and developing countries will grow by 6.3 percent, with China's economy growing by 8.1 percent, the report said.
The IMF expects the world's major central banks to maintain their current interest rate policies until the end of 2022.
Financial conditions in advanced economies will remain broadly at current levels while those in emerging market and developing economies will gradually improve.
Oil prices are expected to rise by about 20 percent in 2021 from their 2020 lows, thanks to a recovering global economy and rising commodity prices, but they will still be well below their 2019 average.
Non-oil commodity prices are also expected to rise, particularly metals, which are expected to accelerate strongly in 2021.