After a near-certain contraction last year for the third time since 2019, Hong Kong’s economy is coming back stronger this year and may even grow faster than rival financial hub Singapore for the first time in more than a decade.

World Business Watch: Hong Kong's GDP growth likely to be above Singapore's

While the global economy is still growing, the uneven distribution of vaccines is widening disparities as rich countries pick up speed and leave developing nations behind, the IMF warned Tuesday.

"Vaccine access has emerged as the principal fault line along which the global recovery splits into two blocs," the International Monetary Fund said in its updated World Economic Outlook.

But the IMF warned of the danger to the whole world if new virus variants are allowed to take hold.

The recovery "is not assured even in countries where infections are currently very low so long as the virus circulates elsewhere," the report said.

World GDP will expand by six percent this year, unchanged from the April forecast, but IMF chief economist Gita Gopinath flagged the "widening gap" as advanced economies grow faster and developing nations, especially in Asia, slow.

The United States is projected to see much faster growth this year than previously forecast, expanding seven percent growth thanks to massive government spending and widespread COVID-19 vaccinations, but the IMF slashed the forecast for India, which is facing a resurgence of infections.

The Washington-based crisis lender once again stressed that "the immediate priority is to deploy vaccines equitably worldwide," and pushed a $50 billion plan that offers a "feasible cost to end the pandemic."

Advanced nations have vaccinated nearly 40 percent of the population, compared to barely 11 percent in emerging markets and a tiny fraction in low-income countries, the report said.

Gopinath said "at least 1 billion vaccine doses should be shared in 2021 by countries with surplus vaccines."

Failure to achieve widespread vaccinations could allow highly infectious virus variants to take hold, like the Delta variant that has become prevalent. That could derail the recovery, wiping out $4.5 trillion cumulatively from global GDP by 2025, more than half of that lost from rich nations, the fund estimates.

And this is not just a "tail risk" that is highly unlikely but "a realistic downside risk," said Petya Koeva-Brooks, deputy director of the IMF Research Department.

More worried now

Although some emerging market nations like Brazil and Mexico are poised to show stronger growth this year, developing nations as a group are struggling to return to their pre-pandemic levels.

"I would say we're more worried than we were back in April," Koeva-Brooks told AFP.

Vaccinations allowed an economic reopening and led to upgrades for the United States for this year and next, when growth is expected to hit 4.9 percent.

However, that assumes the US Congress will approve another round of spending later this year of about $4 trillion in President Joe Biden's infrastructure and job creation programs.

The IMF also raised the 2021 estimates for Canada and Britain to 6.3 percent and seven percent, respectively, while the euro area GDP is expected to expand 4.6 percent, just slightly higher than the April WEO.

India's growth forecast was slashed three points to 9.5 percent, and even China was trimmed by three-tenths of a percentage point to 8.1 percent.

In Latin America, Mexico is expected to post higher growth, helped by the positive spillovers from the recovering US economy as well as from increasing domestic demand, while Brazil also got a boost amid rising commodity prices, which will fade next year, the report said.

Temporary or persistent?

Rising prices are another factor weighing on the global recovery, and pose a challenge to policymakers.

And while the recent inflation spike is the result of the unprecedented and uneven turnaround from the pandemic and should prove temporary, the IMF raised the possibility that price increases could become "persistent."

"The unprecedented convulsion in the global economy last year continues to trigger aftershocks," the IMF said, pointing to a shortage of computer chips and a lack of shipping containers where they are needed, which has delayed deliveries of materials.

Koeva-Brooks said some of the bottlenecks and price jumps were to be expected and should be temporary, but acknowledged that the situation is hard to measure.

"We've never seen how to reopen economies after a crisis like this one," she said.

The IMF said inflation should return to pre-pandemic ranges in 2022 and urged central banks to hold off on reacting to the temporary price pressures -- but to be ready to take "preemptive action."

While the global economy is still growing, the uneven distribution of vaccines is widening disparities as rich countries pick up speed and leave developing nations behind, the IMF warned Tuesday.

While the global economy is still growing, the uneven distribution of vaccines is widening disparities as rich countries pick up speed and leave developing nations behind, the IMF warned Tuesday. "Vaccine access has emerged as the principal fault line along which the global recovery splits into two blocs," the International Monetary Fund said in its updated World Economic Outlook. But the IMF warned of the danger to the whole world if new virus variants are allowed to take hold. The recovery "is not assured even in countries where infections are currently very low so long as the virus circulates elsewhere," the report said. World GDP will expand by six percent this year, unchanged from the April forecast, but IMF chief economist Gita Gopinath flagged the "widening gap" as advanced economies grow faster and developing nations, especially in Asia, slow. The United States is projected to see much faster growth this year than previously forecast, expanding seven percent growth thanks to massive government spending and widespread COVID-19 vaccinations, but the IMF slashed the forecast for India, which is facing a resurgence of infections. The Washington-based crisis lender once again stressed that "the immediate priority is to deploy vaccines equitably worldwide," and pushed a $50 billion plan that offers a "feasible cost to end the pandemic." Advanced nations have vaccinated nearly 40 percent of the population, compared to barely 11 percent in emerging markets and a tiny fraction in low-income countries, the report said. Gopinath said "at least 1 billion vaccine doses should be shared in 2021 by countries with surplus vaccines." Failure to achieve widespread vaccinations could allow highly infectious virus variants to take hold, like the Delta variant that has become prevalent. That could derail the recovery, wiping out $4.5 trillion cumulatively from global GDP by 2025, more than half of that lost from rich nations, the fund estimates. And this is not just a "tail risk" that is highly unlikely but "a realistic downside risk," said Petya Koeva-Brooks, deputy director of the IMF Research Department. More worried now Although some emerging market nations like Brazil and Mexico are poised to show stronger growth this year, developing nations as a group are struggling to return to their pre-pandemic levels. "I would say we're more worried than we were back in April," Koeva-Brooks told AFP. Vaccinations allowed an economic reopening and led to upgrades for the United States for this year and next, when growth is expected to hit 4.9 percent. However, that assumes the US Congress will approve another round of spending later this year of about $4 trillion in President Joe Biden's infrastructure and job creation programs. The IMF also raised the 2021 estimates for Canada and Britain to 6.3 percent and seven percent, respectively, while the euro area GDP is expected to expand 4.6 percent, just slightly higher than the April WEO. India's growth forecast was slashed three points to 9.5 percent, and even China was trimmed by three-tenths of a percentage point to 8.1 percent. In Latin America, Mexico is expected to post higher growth, helped by the positive spillovers from the recovering US economy as well as from increasing domestic demand, while Brazil also got a boost amid rising commodity prices, which will fade next year, the report said. Temporary or persistent? Rising prices are another factor weighing on the global recovery, and pose a challenge to policymakers. And while the recent inflation spike is the result of the unprecedented and uneven turnaround from the pandemic and should prove temporary, the IMF raised the possibility that price increases could become "persistent." "The unprecedented convulsion in the global economy last year continues to trigger aftershocks," the IMF said, pointing to a shortage of computer chips and a lack of shipping containers where they are needed, which has delayed deliveries of materials. Koeva-Brooks said some of the bottlenecks and price jumps were to be expected and should be temporary, but acknowledged that the situation is hard to measure. "We've never seen how to reopen economies after a crisis like this one," she said. The IMF said inflation should return to pre-pandemic ranges in 2022 and urged central banks to hold off on reacting to the temporary price pressures -- but to be ready to take "preemptive action."

IMF warns developing nations falling behind due to unequal vaccine access

The Indian government said on Tuesday it expects the economy to grow at 5.0% in the fiscal year ending in March, lower than 6.8 % recorded a year earlier. Most private economists have lowered India's growth forecast to around 5% for the 2019/20 fiscal year, after the central bank cut its growth estimate to 5.

The Indian government said on Tuesday it expects the economy to grow at 5.0% in the fiscal year ending in March, lower than 6.8 % recorded a year earlier. Most private economists have lowered India's growth forecast to around 5% for the 2019/20 fiscal year, after the central bank cut its growth estimate to 5.0% last month, citing weakening demand and a slowdown in global economic activity.

India forecasts 2019/20 GDP growth rate at 5%

Union Minister Prakash Javadekar on Sunday said that the fundamentals of the economy were "good" and the "temporary" fall in GDP growth rate would come back on "track very soon".

"It is a little diversion. This is a temporary thing. It will come to track very soon," Javadekar said when asked how India will achieve the ambitious goal of becoming a USD 5 trillion economy with a low growth rate.

"Our fundamentals are good and we will march as per our plan and achieve our target of becoming the USD 5 trillion economy," he added.

Calling the GDP growth rate slump as "normal", Javadekar said that the slowdown is a cyclical process, and such a patch will not hurt the country's progress rate.

"Even during the UPA rule when the growth rate was about 7-8 per cent, there was a quarter when it fell to 5 per cent. This is not the case that it does not happen anywhere. Even big economies like the US face this," he told reporters.

The Minister said that the fundamentals of the economy were "good" and asserted that the ambitious goal will be achieved.

Javadekar was addressing the media on the occasion of Prime Minister Narendra Modi's government completing 100 days, after coming to power for a second consecutive term with a massive mandate.

Union Minister Prakash Javadekar on Sunday said that the fundamentals of the economy were "good" and the "temporary" fall in GDP growth rate would come back on "track very soon".

Union Minister Prakash Javadekar on Sunday said that the fundamentals of the economy were "good" and the "temporary" fall in GDP growth rate would come back on "track very soon". "It is a little diversion. This is a temporary thing. It will come to track very soon," Javadekar said when asked how India will achieve the ambitious goal of becoming a USD 5 trillion economy with a low growth rate. "Our fundamentals are good and we will march as per our plan and achieve our target of becoming the USD 5 trillion economy," he added. Calling the GDP growth rate slump as "normal", Javadekar said that the slowdown is a cyclical process, and such a patch will not hurt the country's progress rate. "Even during the UPA rule when the growth rate was about 7-8 per cent, there was a quarter when it fell to 5 per cent. This is not the case that it does not happen anywhere. Even big economies like the US face this," he told reporters. The Minister said that the fundamentals of the economy were "good" and asserted that the ambitious goal will be achieved. Javadekar was addressing the media on the occasion of Prime Minister Narendra Modi's government completing 100 days, after coming to power for a second consecutive term with a massive mandate.

GDP growth rate slump is temporary: Prakash Javadekar

In this segment of India Watch, We speaks to Dr. Waheguru Pal Singh Sidhu, Professor at NY University & Mr. Lord Meghnad Desai, Author & Professor Emeritus at LSE.

India Watch: Decodes GDP Growth Rate Slump With Some Experts

<a href="http://wionews.com/south-asia/our-diplomatic-contact-with-the-us-is-almost-next-to-none-pak-foreign-minister-141433">Our diplomatic contact with the US is almost next to none: Pak foreign minister</a>

The minister blamed the US's failure to win the war in Afghanistan for being responsible for the deteriorating relations with the US.

&nbsp;

<a href="http://wionews.com/india-news/entertainment-sanju-trailer-did-you-spot-arshad-warsi-in-one-of-the-frames-141437">'Sanju' trailer: Did you spot Arshad Warsi in one of the frames?</a>

The film also boasts of gamut of Bollywood actors who play some very important roles.

&nbsp;

<a href="http://wionews.com/south-asia/positive-developments-with-india-on-granting-market-access-pakistan-141435">Positive developments with India on granting market access: Pakistan</a>

Khurram Dastagir Khan hoped for a new vigour in ties with India after the upcoming general election in Pakistan.

<h1>&nbsp;</h1>

<a href="http://wionews.com/sports/real-madrid-boss-zinedine-zidane-steps-down-as-manager-141338">Football: Zinedine Zidane steps down as Real Madrid manager</a>

After winning the competition, there were rumours over the exit of two players Cristiano Ronaldo and Gareth Bale.

&nbsp;

<a href="http://wionews.com/business-&-economy/india-fastest-growing-economy-now-with-77-per-cent-gdp-growth-rate-141360">India fastest growing economy now with 7.7 </a><a href="http://wionews.com/business-&-economy/india-fastest-growing-economy-now-with-77-per-cent-gdp-growth-rate-141360">per cent</a><a href="http://wionews.com/business-&-economy/india-fastest-growing-economy-now-with-77-per-cent-gdp-growth-rate-141360"> GDP growth rate</a>

http://wionews.com/business-&-economy/india-fastest-growing-economy-now-with-77-per-cent-gdp-growth-rate-141360

The minister blamed the US's failure to win the war in Afghanistan for being responsible for the deteriorating relations with the US.

Our diplomatic contact with the US is almost next to none: Pak foreign minister The minister blamed the US's failure to win the war in Afghanistan for being responsible for the deteriorating relations with the US. 'Sanju' trailer: Did you spot Arshad Warsi in one of the frames? The film also boasts of gamut of Bollywood actors who play some very important roles. Positive developments with India on granting market access: Pakistan Khurram Dastagir Khan hoped for a new vigour in ties with India after the upcoming general election in Pakistan. Football: Zinedine Zidane steps down as Real Madrid manager After winning the competition, there were rumours over the exit of two players Cristiano Ronaldo and Gareth Bale. India fastest growing economy now with 7.7 per cent GDP growth rate http://wionews.com/business-&-economy/india-fastest-growing-economy-now-with-77-per-cent-gdp-growth-rate-141360

Top-5 news stories of the day

After announcing 8.1 per cent hike in its defence expenditure for 2018, China on Monday set its Gross Domestic Product (GDP) growth rate for 2018 at around 6.5 per cent.

The target which is same as of last year was announced by Premier Li Keqiang in his annual work report as the country started its parliament session.

The world&#39;s second-largest economy aimed to reduce risks to its financial system from a rapid build-up in debt.

After the ceremonial opening attended by President Xi Jinping and around 3,000 delegates, Premier Li outlined the government&#39;s achievements last year and targets set for this year.&nbsp;

Given China&#39;s economic fundamentals and capacity for job creation, the GDP growth of around 6.5 per cent will enable China to achieve relatively full employment, Li said in his report.

The report also said China would clamp down on the kind of financially risky operations which have threatened to cause the collapse of major companies.

It follows last month&#39;s steps by the government to take control of insurance and financial giant Anbang.

China aims to maintain inflation level at around three per cent and create over 11 million new urban jobs.&nbsp;

China also announced to lower import tariffs on products including automobiles and some everyday consumer goods to encourage imports.&nbsp;

&quot;We will open our market wider to promote industry upgrading and more balanced development of trade, and to provide Chinese consumers with a broader range of choices,&quot; he said.

The central and western regions will continue to be the priority for major infrastructure construction, he added. 
&nbsp;

After announcing 8.1 per cent hike in its defence expenditure for 2018, China on Monday set its Gross Domestic Product (GDP) growth rate for 2018 at around 6.5 per cent. The target which is same as of last year was announced by Premier Li Keqiang in his annual work report as the country started its parliament session. The world's second-largest economy aimed to reduce risks to its financial system from a rapid build-up in debt. After the ceremonial opening attended by President Xi Jinping and around 3,000 delegates, Premier Li outlined the government's achievements last year and targets set for this year. Given China's economic fundamentals and capacity for job creation, the GDP growth of around 6.5 per cent will enable China to achieve relatively full employment, Li said in his report. The report also said China would clamp down on the kind of financially risky operations which have threatened to cause the collapse of major companies. It follows last month's steps by the government to take control of insurance and financial giant Anbang. China aims to maintain inflation level at around three per cent and create over 11 million new urban jobs. China also announced to lower import tariffs on products including automobiles and some everyday consumer goods to encourage imports. "We will open our market wider to promote industry upgrading and more balanced development of trade, and to provide Chinese consumers with a broader range of choices," he said. The central and western regions will continue to be the priority for major infrastructure construction, he added.

China sets 2018 GDP growth target at 6.5 per cent

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