Wednesday, April 7, 2021

IMF: US to Lift Global GDP-Can We Sustain It?

The IMF projects the U.S. will be biggest global growth influencer this year. Its great that we can lift the global economy out of a crisis but it is better that we turn government investment into long term growth. That will require us to think more about sustainable economic development and how key infrastructure investments improve the economic capacity of "actors" (commercial activity) within the system. In the Information Age we will have much better statistics and metrics that will provide information on how to improve the infrastructure in a way that leads to net positive economic outputs (based on relative development trajectories) through stronger business and government coordination (See Perpetual Sustainable Economy). 

The IMF states, "Global growth is projected at 6 percent in 2021, moderating to 4.4 percent in 2022. The projections for 2021 and 2022 are stronger than in the October 2020 WEO. The upward revision reflects additional fiscal support in a few large economies, the anticipated vaccine-powered recovery in the second half of 2021, and continued adaptation of economic activity to subdued mobility. High uncertainty surrounds this outlook, related to the path of the pandemic, the effectiveness of policy support to provide a bridge to vaccine-powered normalization, and the evolution of financial conditions." (IMF, April 2021, para 2)

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